Assessing Qatar-Pakistan LNG Deal

Pakistan has recently negotiated a good bargain with Qatar for importing $16 billion worth of liquified natural gas (LNG).

Pakistan will import as much as 20 million tons of the super-chilled gas annually from various sources including Qatar, enough to fuel about two-thirds of Pakistan’s power plants. Gas shortage has idled half the nation’s generators. A 75 percent drop in LNG prices since 2014 has  dramatically reduced the cost of the South Asian country’s energy needs, according to a Bloomberg report.

LNG arriving in Pakistan from Qatar will fetch 13.37% of the preceding three-month average price of a Brent barrel (considering the present Brent price as a proxy, that would equate to $167.5 per 1000 cubic meters), according to a report in Azerbaijan's Trend News.  It translates to $4.50 per million BTUs.

A comparison with Iran's gas deals with Turkey and Iraq indicates that Iranian gas will not be competitive with Qatari LNG on Pakistani market. In 2014 Iran was exporting gas to Turkey at above $420 per 1000 cubic meters, but the figure plunged to $225, or $6 per million BTUs, currently due to low oil price. Iran previously said that the price of gas for Iraq would be similar to Turkey's price.

International Chamber of Commerce (ICC) arbitration court has recently ordered Iran to reduce its gas price to Turkey by 15% after Turkey complained. It's not clear if Iran will comply but even if it does, its price will still be $5.10 per million BTUs, much higher than the Qatari LNG price of $4.50 per million BTUs for Pakistan.

As recently as two years ago, LNG shipped to big North Asian consumer like Japan and Korea sold at around $15 to $16 a million British thermal units. Late last year, the price hit $6.65 a million BTUs, down 12% from September, according to research firm Energy Aspects. It expects prices to fall further in Asia this year, to under $6 per million BTUs, as a wave of new gas supply in countries from the U.S. to Angola to Australia comes on line, according to Wall Street Journal.

 Petronet LNG Ltd, India’s biggest importer of liquefied natural gas (LNG), is saving so much money buying the commodity from the spot market that it’s willing to risk penalties for breaking long-term contracts with Qatar.

Will Pakistan be able to negotiate a better price with Iran? It seems difficult given the fact that Iranians have a reputation of being very difficult to deal with. Here's an excerpt about Iranians' negotiating style from Iranian-American author Vali Nasr's book "The Dispensable Nation":

"I remember a conversation in 2006 with Jack Straw, who was then Britain’s foreign secretary, about his time talking to Iran. He said, People think North Koreans are difficult to negotiate with. Let me tell you, your countrymen [Iranians] are the most difficult people to negotiate with. Imagine buying a car. You negotiate for a whole month over the price and terms of the deal. You reach an agreement and go to pick up the car. You see it has no tires. “But the tires were not part of the discussion,” the seller says. “We negotiated over the car.” You have to start all over again, now wondering whether you have to worry about the metal rim, screws, or any other unknown part of the car. That should give you a sense of what talking to Iran looks like".


Source: US EIA
Regardless of whether Pakistan succeeds in using Qatar price leverage with Iran. it's good to see Pakistan finally beginning to take advantage of historic low gas prices to alleviate its severe load-shedding of gas and electricity.

Growing Demand-Supply Gap in Pakistan

In addition to signing the Qatar LNG deal, Pakistan has launched its first LNG import terminal in Karachi and started receiving shipments from Qatar. Pakistan has also signed a $2 billion deal with Russians to build a north-south pipeline from Gwadar to Lahore. But the country needs to rapidly build up capacity to handle imports and distribution of significant volumes of LNG needed to resolve its acute long-running energy crisis.


Here's a related video discussion:
http://dai.ly/x3ccasi



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Comments

Riaz Haq said…
Under the (LNG) agreement (with Qatar), the LNG price with QG2 could be reviewed once, after the 10th anniversary of the start date. In case of failure of price review, either party could terminate the agreement with effect from the end of the contract year in which the termination notice was served. Simply put, the minimum supply period under the agreement would not be less than 11 years.
The price agreed for each LNG cargo discharged in a particular month is 13.37pc of preceding three month average of Brent value. Annual contract LNG quantity for first year (2016) would be prorate of 2.25m tons and first quarter of 2017 after which the quantity would be increased to 3.75m tons per annum beginning second quarter of 2017.
The long-term agreement also provides for annual upward and downward flexibilities of up to three LNG cargoes per contract year. Downward flexibility can be accumulated for two contract years. Under the ‘take or pay’ clause of the agreement, Pakistan is required to take full contracted LNG or else pay full cost even if it fails to receive LNG quantities for any reason. The PSO would be required to make full payment 15 days after the completion of LNG unloading.
In order to ensure that the payment is made within 15 days, the PSO would provide Standby Letter of Credit to Qatargas at 105pc of the value of four LNG cargoes during the first year. From second year onwards, the PSO would provide the letter of credit of 105pc of the value of six cargoes.
The government said it had also carried out a price comparison of all long-term gas import options, including previous LNG import attempts at indicative Brent price of $40 per barrel, suggesting that LNG import from Qatar would be the lowest.

It said the delivery ex-ship price of LNG under the Mashal Project terminated following court disputes at $40 per barrel worked out at $6.94 per MMBTU.

The price of integrated LNG import project at $40 Brent (Current Price is $30) was calculated at $6.01 per MMBTU ( Current $4.50 per MMBTU ).

Qatar had last offered $6.56 per MMBTU at Brent price of $40 per barrel while the current price is $5.35.
Compared with the natural gas import options, the government claimed the delivery price at border under the Iran-Pakistan gas pipeline was $5.70 per MMBTU at $40 Brent price and that of Turkmenistan-Afghanistan-Pakistan-India was $5.90.

http://www.dawn.com/news/1238783
Riaz Haq said…
World's Largest #LNG ship with 216,000 cubic meters from #Qatar docks at Port Qasim in #Karachi #Pakistan http://www.samaa.tv/economy/2016/03/largest-lng-ship-docked-at-port-qasim/ …

The first-ever ship of Liquified Natural Gas (LNG), after reaching an agreement between Pakistan and Qatar on LNG import last month, entered Pakistan’s maritime economic zone and was docked at Elengy Terminal at Port Qasim, Tuesday evening.

The Qatari ship is the largest vessel carrying LNG to Elengy Terminal and is one of the largest ships anchored at Port Qasim.

Its capacity is 216,000 cubic metres, said Elengy Terminal statement here.

After docking, the LNG ship was hooked up with FSRU Unit of Elengy Terminal for re-filling of gas process.

The ship would remain hooked up at the Elengy Terminal for two days till the process of re-gasification in pipeline is completed.

The next LNG ship from Qatar is scheduled to arrive at Port Qasim on March 8, 2016.

The Engro’s Elengy Terminal capacity has been enhanced to 400 mm CEFD, the statement said
Riaz Haq said…
#Iran envoy in #Delhi accuses #US, #India #LNG industry of blocking #Iran-#Pakistan-#India #gas pipeline project

http://www.newindianexpress.com/world/Iran-Pakistan-India-Gas-Pipeline-not-Possible-Iranian-Ambassador/2016/04/22/article3394553.ece …


Iranian ambassador Gholamreza Ansari also stressed that the "Americans will not let it happen".

"Those who have invested in the LNG (liquified petroleum gas) projects in India will not allow the pipeline venture to take off, he said at a media interaction at the Foreign Correspondnets' Club here Thursday evening..

"People who have invested in LNG in India, I don't think they will let any pipes to come in," he said.

"Americans are looking for the Indian market for the future and any sort of pipeline will put and end to these investments. So, I don't think pipeline can be a serious project. I am sure Americans will not let this project go ahead," he added.

He said that the Chabahar port project that will open up access to central Asia has been almost finalised.

"It has almost been finalised. Only the signatures at the ministerial level is due," he said.
Riaz Haq said…
#Pakistan Seals Major Deal for 75,000 tons of #LPG with #Iran | http://OilPrice.com http://oilprice.com/Latest-Energy-News/World-News/Pakistan-Seals-Major-LPG-Deal-with-Iran.html … #oilprice


By Charles Kennedy
Posted on Wed, 04 May 2016 18:26 | 0
Pakistan and Iran have signed a deal under which the former will import 75,000 tons of liquefied petroleum gas within a year, months after a similar agreement was inked with Qatar.

According to the deal, signed by the All Pakistan Liquefied Petroleum Gas Distributors Association and a national Iranian company, at least 6,000 tons of LPG will be imported from Iran every month over the course of a year.

In February, Pakistan and Qatar signed a $16-billion liquefied natural gas (LNG) deal which provides imports for 16 years, throwing the authorities in energy-crisis ridden Pakistan a life-line for supplies.

Related: A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie

The deal signed in Doha by Pakistani Prime Minister Nawaz Sharif and Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa will see Qatar export 3.75 million tons of LNG to Pakistan. This is significant for Pakistan, which faces a 50% supply gap in relation to demand.

As concerns the deal with Iran, the price of the imported LPG will be in line with local market prices, according to All Pakistan Liquefied Petroleum Gas Distributors Association president Irfan Khokhar.
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In the meantime, Pakistan’s only LNG terminal at Port Qasim has converted 1.7 million tons of imported LNG and pumped more than 77 billion cubic feet of gas into the national gas distribution network. Over the course of last 13 months, some 29 LNG shipments from Qatar, Australia, Nigeria and Spain have docked at this port.

Related: The Last Great Frontier For Cheap Oil And Gas?

“This terminal alone will save up to $600 million for Pakistan through fuel substitution and will generate up to 2,000MW of electricity. The step to set up LNG import infrastructure is in the right direction and the country needs another three to four LNG import terminals to curtail the ongoing crisis,” Pakistani media quoted terminal manager Amir Mahmud as saying.
Riaz Haq said…
#Pakistan prepares its second #LNG import terminal http://reut.rs/2bL9MlS via @Reuters

http://www.reuters.com/article/pakistan-lng-idUSL3N1B41ST

Pakistan is taking another step towards becoming a key buyer of liquefied natural gas (LNG), signing a deal to purchase a Floating Storage and Regasification Unit (FSRU) for its second import terminal.

Singapore's BW Group said in a statement on Monday that it would deliver the FSRU to Pakistan GasPort Limited (PGPL) in the fourth quarter, as well as providing the terminal at Port Qasim, Karachi with LNG regasification services in a 15-year agreement.

The South Asian country has been earmarked as an up-and-coming demand outlet for the oversupplied LNG market. Along with Egypt and Jordan, Pakistan was a newcomer to the LNG import market in 2015, helping drive up demand and absorb growing world supplies from a wave of new projects.

The new import terminal will be able to receive 600 million cubic feet of natural gas per day and is expected to be commissioned for operations by mid-2017.

The terminal will reduce Pakistan's gas deficit by 30 percent and ensure fuel for 3,600 megawatts of new power generation plants being constructed in the country, said PGPL chairman Iqbal Ahmed.

Pakistan started up the 3.5 million tonnes per year Engro Elengy LNG terminal, the country's first LNG import facility, in Port Qasim last March. Pakistan shipped in a total of 1.02 million tonnes of LNG in 2015, and has imported 1.78 millions tonnes in the first seven months of this year.

"We are seeing weaknesses more in the North Asian market, and (South) Korea ... and a lot of the strong (demand) growth in where you might expect," said Neil Beveridge, a Hong Kong-based analyst at AB Bernstein, referring to emerging economies such as Pakistan.

Qatar, which signed two term supply contracts with Pakistan this year, is the country's largest LNG supplier.
Riaz Haq said…
Floating liquefied natural gas terminals are key to #Pakistan’s #energy plan. #LNG http://on.wsj.com/2cqS8rj via @WSJ

Pakistan is taking on its acute energy shortage by dramatically ramping up imports of liquefied natural gas, while undertaking the longer-term goal of upgrading its energy infrastructure with new pipelines, refineries and storage facilities.

Key to Pakistan’s plan are floating terminals that will convert imported LNG into gas.

Costing less than half of building a traditional on-land terminal and faster to get up and running, the vessels anchor at ports, often on a long-term basis, and pipe gas into land-based pipeline networks, helping cash-strapped countries meet urgent energy needs. The floating import terminals have opened up new markets for LNG producers, who are under pressure from falling prices that have halved in the past two years due to a wave of new supply.


The country kick-started LNG imports in 2015, with Pakistani petrochemical and energy company Engro Corp. Ltd. leasing a floating import terminal, stationed in Karachi’s Port Qasim from where gas is piped into Pakistan’s local distribution system. A second terminal is planned for mid-2017 by a consortium led by Pakistan GasPort Ltd. Up to five such terminals are needed, said Sheikh Imran ul Haque, chief executive of the country’s biggest energy importer, Pakistan State Oil.

“Pakistan has not seen as much restructuring in its energy sector as what’s happening today in decades. And if we’re successful, there’s a potential investment of around $15 billion in refineries, pipelines, and the other projects coming in,” Mr. Haque said.


Mr. Haque said that Pakistan will be in the market within the next four months to buy around 4 million tons per year of LNG to supply its second import terminal. The LNG will most likely be purchased in a series of tenders at between 0.75-and-1.5 million tons apiece, Mr. Haque added.

Pakistan officials see LNG imports as providing fast relief.

The country of nearly 200 million people has long suffered from a lack of investment in its energy sector, causing hours of rolling supply cuts to homes and businesses daily. The U.S. Agency for International Development estimates that power shortages curb Pakistan’s economic growth by around 2% a year.
Riaz Haq said…
Next #LNG importing giant #Pakistan readies for buying spree of 600 billion cubic feet per day | ET EnergyWorld

http://energy.economictimes.indiatimes.com/news/oil-and-gas/next-lng-importing-giant-pakistan-readies-for-buying-spree/55198906

Pakistan LNG Ltd has launched a mid- and a long-term tender to purchase a combined 240 shipments of liquefied natural gas (LNG), the company said on its website, as the country emerges to become a major gas importer.

Pakistan, which can only meet around two-thirds of its gas demand, is expected to issue further tenders seeking twice as much supply to fill out remaining capacity at its new import terminal at Port Qasim, in the commercial capital Karachi, according to one Pakistani energy expert.

The mid-term tender covers a period of five years and calls for 60 shipments, while the long-term tender is for 15 years and 180 cargoes, according to information presented in the tender documents released on the company's website on Tuesday.

Suppliers must submit bids by Dec. 20.

Pakistan has ploughed billions of dollars into LNG infrastructure, including the construction of a second LNG import terminal and pipelines linking Karachi with Lahore in the Punjab region, the nation's industrial heartland.

The current crop of tenders are a small part of Pakistan's projected demand as the country works to bring two more import terminals online within the next couple of years, making it a potent force in global gas markets.

The country first began buying LNG last year and has already contracted supplies from trading firm Gunvor and Qatargas, the world's biggest LNG producer.

Cheap gas is tempting out new importers from the Middle East to Africa and Asia, helping stave off a deeper price rout hurting producers' bottom lines.

Cheaper than fuel oil and cleaner-burning than coal, LNG suits emerging economies racing to bridge electricity shortfalls and support growth on tight budgets.

The Port Qasim LNG terminal, which is due to go online in mid-2017, has a capacity of 600,000 million cubic feet per day.

"This tender is for 200 million cubic feet. That means another 400 million will need to be tendered out soon," said the industry source.

A Pakistan LNG official in September said the country was working on commercial as well as government-to-government LNG deals.
Riaz Haq said…
#India should revive #Iran-#Pakistan-India gas pipeline: #Indian Parliamentary Panel http://www.financialexpress.com/india-news/india-should-revive-iran-pakistan-india-pipeline-parliamentary-panel/593913/#.WM6fx1OAQNI.twitter … via @FinancialXpress

India should consider reviving the long-delayed Iran-Pakistan-India (IPI) gas pipeline following easing of sanctions on Tehran, a Parliamentary panel has said. India had almost abandoned the IPI pipeline in 2008 following the US sanctions against Iran over its suspected nuclear programme and has instead pursued a rival line from Turkmenistan, passing through Afghanistan and Pakistan (TAPI pipeline).
“The government should examine the idea of reviving the (IPI) project as international conditions have become favourable following lifting of sanctions against Iran,” the Standing Committee on Petroleum and Natural Gas said in a report submitted to Parliament on Friday.
The Oil Ministry in its comments to the committee stated that IPI pipeline was envisaged to transport natural gas from South Pars gas field of Iran to Pakistan and India with a carrying capacity of 60 million standard cubic meters per day, to be equally split between India and Pakistan. “The total length of the pipeline up to Indian border (near Barmer) was about 2,135 km (1,100 kms within Iran and the rest within the territory of Pakistan),” the ministry said. “As per past estimates, investments required for this pipeline were in excess of $7 billion.”
There has been “little or no progress” in the IPI project since 2008 for a number of reasons, the Committee said in its report without elaborating.

India is pursuing transnational pipelines to meet rising energy needs. The country is reliant on imports to meet about half of its natural gas needs. The panel said a consortium for Turkmenistan-Afghanistan -Pakistan-India (TAPI) pipeline — TAPI Pipeline Company Ltd (TPCL) — was incorporated in Isle of Man, and shareholders’ agreement signed in December 2015.
Turkmenistan will own 85 per cent of TPCL while India, Pakistan and Afghanistan will each have 5 per cent stake. “The construction of pipeline has commenced in December 2015 and is likely to be completed in about 7 years,” it said.
It recommended that TAPI project be monitored closely in collaboration with other participating countries in order to ensure that the project is completed in time.
“The Committee feels that trans-national pipelines are important elements of national energy security and they need to be pursued vigorously,” the report added.
On April 7 last year the Investment Agreement (IA) of TPCL was signed in Ashgabat. “It relates to initial equity infusion by the shareholders. TPCL subsequently opened its office in Dubai, UAE and has been holding its board meetings,” the ministry said in its submission to the panel.
Riaz Haq said…
THE EXPRESS TRIBUNE > BUSINESS
Pakistan set to overcome energy crisis in six months: Abbasi

https://tribune.com.pk/story/1411718/pakistan-set-overcome-energy-crisis-six-months-abbasi/

Pakistan is poised to overcome the chronic energy crisis in the next six months as it doubles the import of liquid natural gas (LNG) and removes the deficit in power production, said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Tuesday.

“The second LNG import terminal would become operational in two months,” Abbasi said at the rebranding of a Pakistan State Oil’s (PSO) outlet in Karachi.

The new import terminal, Pakistan LNG Terminal Limited at Port Qasim by Pakistan GasPort consortium, would add 600 million cubic feet per day (mmcfd).

Engro’s Elengy Terminal Pakistan Limited at Port Qasim has already been importing 600mmcfd in the country from Qatargas.

The minister said import of LNG would continue to increase to meet rising domestic demand going forward.

“The domestic demand has shot up to 7bcfd (billion cubic feet per day) against local production at 4bcfd,” he said.

“Local production has remained stagnant at 4bcfd for the last 15 years.”

He said that the country would do away with the deficit gas production by importing 3bcfd by December 2018.

A Turkish company, Global Energy Infrastructure Limited, is constructing another LNG import terminal with a capacity of 750mmcfd at Port Qasim. As per plans, the terminal would be ready to import gas sometime in July-December 2018, it was learnt.
Riaz Haq said…
#Pakistan Sees Bigger #LNG Profile; Imports to Surge From 4.5 Million Tons in 2016 to 30 Million Tons by 2022

https://www.nytimes.com/reuters/2017/07/10/business/10reuters-pakistan-lng-exclusive.html

Pakistan says it could become one of the world's top-five buyers of liquefied natural gas (LNG), with Petroleum Minister Shahid Abbasi predicting imports could jump more than fivefold as private companies build new LNG terminals.

Outlining Pakistan's ambitious plans - which, if fully implemented, could shake up the global LNG market - Abbasi told Reuters that imports could top 30 million tonnes by 2022, up from just 4.5 million tonnes currently.

Cheaper than fuel oil and cleaner burning than coal, LNG suits emerging economies seeking to bridge electricity shortfalls and support growth on tight budgets.

(For a graphic on LNG market share by region click http://reut.rs/2uGUu9X)

"Within five years, I don't see any reason why we should not be beyond 30 million tonnes (in annual LNG imports). We will be one of the top five markets in the world," Abbasi said.

That kind of jump would represent one of the fastest growth stories in the energy industry, comparable to what China has done in many commodities - but there are doubts whether Pakistan can achieve its ambitions, given the complexity and cost of expansion projects.

"It's always possible, but seems very difficult as they will need much more (regasification) capacity and downstream pipeline capacity," said Trevor Sikorski at Energy Aspects, a London-based industry market researcher. "There are infrastructural issues and financial issues."

"Still, it is one of the key LNG growth markets, and its demand will help tighten up the market that has threatened to lurch into over supply."

Abbasi said no one took Pakistan seriously after a decade of botched attempts to bring LNG to the country, but this has changed with the construction of new LNG terminals and gas plants. He said foreign suppliers are now arriving in Pakistan - where energy shortages have prompted Prime Minister Nawaz Sharif to promise he'll end the country's frequent blackouts.

"Before, we used to go out to talk to LNG suppliers. Now they're coming to us," Abbasi said.

"(LNG) is really what has saved the whole energy system. It has been a huge success in Pakistan and it will continue," he said after Sharif on Friday inaugurated a new Chinese-built LNG power plant that uses General Electric turbines.

GETTING CONNECTED

Pakistan built its first LNG terminal in 2015 and, after some delays, a second terminal is due to come online in October, doubling annual import capacity to about 9 million tonnes.

A consortium of Exxon Mobil, Total, Mitsubishi, Qatar Petroleum and Norway's Hoegh is expected to decide by September whether to build a third LNG terminal for about $700 million, Abbasi said.

Pakistan has dropped plans to finance up to two more terminals, as private companies have said they would finance these themselves and use Pakistan's existing gas network to sell directly to consumers.

"That's been the real success and that's where the growth will come from," Abbasi said, adding that about 10 million homes are linked to gas connections in Pakistan - a nation of around 200 million.

"In the last four years, we would have added two million additional connections. We are really ramping that up."

If Pakistan achieves its ambitious development goals, it could significantly erode market oversupply, which has helped pull down Asian LNG spot prices by more than 70 percent since 2014 to around $5 per million British thermal units (mmBtu).
Riaz Haq said…
Woodside sees Qatar LNG expansion hurting U.S. LNG growth

https://www.reuters.com/article/us-woodside-lng-idUSKBN1A50KT

MELBOURNE (Reuters) - A plan by top global liquefied natural gas (LNG) exporter Qatar to ramp up output will stall the expected growth of U.S. LNG exports, the head of Australia's Woodside Petroleum, operator of the country's biggest LNG plant, said.

Qatar surprised rivals this month when it lifted a self-imposed ban on development of the North Field, the world's biggest natural gas field, saying it would boost LNG output by 30 percent to 100 million tonnes a year in five to seven years.

That put it on course to it wrest back the title of the world's top LNG exporter from Australia, which is set to overtake Qatar in the next two years.

Woodside, operator of the North West Shelf project, said Qatar's plan showed the emirate shares its outlook for solid demand growth for LNG and gives importers like China, India, Pakistan and Bangladesh the supply certainty they need to lock in gas expansion plans.

"The Qataris will not take up all of the available market," Woodside Chief Executive Peter Coleman told Reuters in an interview on Thursday.

Qatar's expansion plan will compete directly with Woodside, which is looking to develop the Browse and Scarborough fields off Western Australia within the next decade - its so-called Horizon 2 projects - by processing gas through the North West Shelf plant or other existing facilities.

"On the challenge side, low cost will get into market, and that's what we're doing with our Horizon 2 projects. We're trying to make sure they're low cost, and they're well positioned, because we're targeting the Asian market," Coleman said.

Projects that will find it harder to compete will be those that need billions of dollars in new infrastructure and coal seam gas-to-LNG projects that need continuous capital spending to drill new wells, he said.

The International Energy Agency last week forecast the United States would become the world's second largest LNG exporter by the end of 2022, but Coleman said the Qatari expansion would stymie that growth.

"It'll keep a lid on U.S. expansions, because U.S. expansions are transportation-challenged," he said.

U.S. LNG flows largely into the Atlantic market, where it competes against pipeline gas from Russia and Norway.
Riaz Haq said…
GE sets gas turbine record in #Balloki #Punjab #Pakistan. #LNG - #Power Engineering International

http://www.powerengineeringint.com/articles/2017/07/ge-sets-gas-turbine-record-in-pakistan.html

GE sets gas turbine record in Pakistan

07/28/2017
By Tildy Bayar
Features Editor


GE has beat its global record for first fire of an H-class gas turbine in Pakistan.

Along with Chinese EPC partner Harbin Electric International Company, GE said it completed the first test in 66 days from delivery on-site.
It added that grid synchronization of the gas turbine was achieved in 74 days, another record.
Two 9HA.01 gas turbines and one steam turbine were supplied to the 1.2 GW LNG-fuelled combined-cycle Balloki power plant in Punjab, currently under development by Pakistan’s government through the National Power Parks Management Company Limited (NPPMCL).
The plant is scheduled for commissioning later this year. It will feature a primary re-gasified LNG fuel system, a secondary diesel fuel system, water cooled condensers and a cooling tower.
The first turbine is now producing up to 380 MW, GE said.
In a statement, the firm emphasized the “strong collaboration” with NPPMCL and Harbin Electric in driving the project.
The previous record was set at Pakistan’s 1230 MW Haveli Bahadur Shah plant, where the duration from gas turbine delivery to first fire test was 74 days according to GE.
Pakistan is the first country in the MENA-Turkey-South Asia region to install 9HA turbines.
Rashid Mahmood Langrial, CEO of NPPMCL, said, “We are committed to delivering on the government’s vision to strengthen power generation in Pakistan and to meet the growing needs for power for residential and commercial use.
“With the first fire and synchronization of the first gas turbine, Balloki is on schedule to enter operation and will support the people and national economic growth of Pakistan.
“The record completion of first fire is a strong demonstration of the extraordinary teamwork that is going into the project to ensure its timely commissioning.”
Pakistan is actively working on boosting its energy security. Earlier this month, the nation signed an agreement with France’s Agency for Development (AFD) for $192m in loans to bolster its energy sector against growing demand.
Planned work includes modernizing the 1 GW Mangla hydropower plant and improving transmission efficiency.
Riaz Haq said…
Pakistan, India imported 25m tons of LNG last year

http://www.hellenicshippingnews.com/pakistan-india-imported-25m-tons-of-lng-last-year/

South Asia, long a backwater for energy markets, is emerging as a hotspot for liquefied natural gas (LNG) with Pakistan and Bangladesh set to join India as major consumers, helping to ease global oversupply that has dogged the market for years.

Pakistan started importing LNG in 2015 after developing its first terminal within schedule and budget. A second is about to become operational and a third is expected to be completed next year.
With Bangladesh set to join the club of importers next year, the region could import 80-100 million tonnes a year by mid-2020s, analysts said, making it the world’s second biggest import region, ahead of Europe.

“By 2025, depending on our national demand, we will import anywhere from 2,000 to 2,500 mmcfd of gas,” Hamid said. Those imports would add to plans from India and Pakistan to buy 50 million and 30 million tonnes of LNG per year, respectively, by mid-2020s.
“LNG imports in South Asia are expected to rise four-fold from 22 million tonnes per year in 2016 to over 80 million tonnes per year by 2030,” said Mangesh Patankar, head of Asia-Pacific business development at energy consultancy Galway Group.
Should all plans in the region go ahead and Sri Lanka also starts imports, this figure could rise to 100 million tonnes, industry project data shows. That would push South Asia’s demand ahead of Europe as the world’s second biggest LNG import region by 2020, though it would still lag North Asia’s 150 million tonnes of annual imports.
The boom in demand will help ease oversupply in LNG markets, which have resulted in a more than 70% price fall from their 2014 peaks to $5.75 per million British thermal units.
Source: Reuters
Riaz Haq said…
LNG keeps Pakistan’s economy moving, price lower than other fuels

http://www.brecorder.com/2017/08/17/365294/lng-keeps-pakistans-economy-moving-price-lower-than-other-fuels/

Around eight months back, Pakistan signed a 15-year agreement with Qatar for import of 3.75 MTPA (millions ton per annum) to meet its growing energy needs as all the existing natural gas reserves appeared insufficient to bridge the ever-increasing gap between demand and supply of the commodity.

The deal started doing wonders when the imported gas fed industries, CNG stations, gas-fired power generation plants and fertilizer sector, giving an impetus to economic activities in the country.

"The country had no option other than to import gas whether it is the LNG or through Iran-Pakistan and Turkmenistan-Afghanistan-India gas pipeline projects as the country's existing reserves are depleting and there is no major find since long," officials of Ministry of Energy's Petroleum Division told APP.

They expressed confidence that the LNG import would prove to be a game-changer for Pakistan because it was considered an essential part of the energy mix needs of emerging economies.

The world is turning towards the LNG and emerging economies such as China, Korea, Japan, India, Thailand, Indonesia, European Union, and Brazil ensure that teh LNG remains part of their energy mix requirements.

The Japan is importing 80 million ton of LNG every year (MTPA) and India 15 MTPA due to the commodity's low price and efficiency as compared to other fuels.

The Pakistan's gas supply-demand gap has reached four billion cubic feet per day (BCFD) as total unconstrained gas demand of the country is eight BCFD against total supply of four BCFD. Needless to say in winter the demand rapidly increases.

They said the LNG was the cheapest alternative fuel and the only instant available remedy to meet the country's energy needs when the existing natural gas reserves were diminishing.

"The LNG is available to consumers at cheaper rate than the LPG. The RLNG price for consumers will be lower than the prices of other alternate fuels. The price of the LNG for consumers is Rs850 per MMBTU as compared to home delivered price of the LPG at Rs2,000 per MMBTU and domestically produced natural gas is priced up to Rs700 per MMBTU," the official disclosed.

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In 2015, the country got its first LNG terminal, which was built in the record period of 11 months and is injecting 600 MMCFD of RLNG in the national system to meet the existing energy shortfall.

Normally, a terminal takes around three to four years to complete and become operational, but it is the hallmark of the present government to set up the country's first LNG terminal in just 11 months.

The second terminal is scheduled to start functioning shortly at the Port Qasim.

Now, the world's major players are showing interest to invest in the LNG sector of Pakistan by setting up their own terminals and developing supply networks to supply gas to consumers through third party access.

Pakistan is building deeper relations with many countries through oil and gas deals on a government-to-government basis after the successful model of oil imports from Kuwait, and in this context, the LNG import deals with various countries, including China, Turkey, Russia, Malaysia, Indonesia and Oman are being negotiated.
Riaz Haq said…
#Pakistan PM Abbasi inaugurates 2nd #LNG Terminal at Port Qasim – Daily Pakistan

https://en.dailypakistan.com.pk/pakistan/pm-abbasi-inaugurates-lng-terminal-2-at-port-qasim/

Addressing the event, Abbasi said the LNG Terminal-2 was established in a record 330 days. “If you don’t add more gas into the system, you cannot fight the energy crisis,” he insisted, adding that other methods to produce energy are either too expensive or too slow.

Talking about the challenges faced during the project, the prime minister said that many people had questioned it when it started but “Port Qasim came through” and the terminal started functioning in less than 14 months “which is exemplary.”

The premier further said that previous governments had made several attempts to introduce LNG as a source of energy in the country, “but only the PML-N government had succeeded in doing so.”

He said load-shedding will become history by end of November this year.

During the meeting with a delegation of businessmen a day earlier, the premier had said China-Pakistan Economic Corridor (CPEC) projects were the lifeline of economic development in Pakistan, hence the business community should take full advantage of the CPEC projects.

He arrived in Karachi on Saturday on a two-day visit.

Earlier in August, an official at the Ministry of Petroleum and Natural Resources said that imports by the LNG Terminal-1 on Port Qasim fulfill 25 per cent of the national gas shortage. The first terminal had received 102 shipments of LNG, the prime minister said.

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