KARACHI: Sui Southern Gas Company (SSGCL) and Engro Elengy Terminal Private Limited (EETPL) entered into an agreement for procurement of additional 200mmcfd LNG gas.
Jahangir Piracha, CEO EETPL remarked imported natural gas was a practical alternative because not only is it cheaper but efficient for power generation.
The agreement was inked between CEO EETPL and Acting MD SSGC Amin Rajput. Minister of State for Petroleum, Jamal Kamal Khan witnessed the signing ceremony.
Piracha said this new agreement was a proof of EETPL’s commitment to meet increasing gas demand in Pakistan and engineer economic growth aside alleviating the energy crisis.
EETPL was contracted in 2014 for building Pakistan’s first LNG terminal and completed the construction in record 332 days. This terminal has a peak capacity for re-gasification of up to 690mmcfd of LNG and since January 2017 it has upgraded and increased its output to 600mmcfd from 400mmcfd for meeting increased gas demand across Pakistan.
Due to recent revision in LNG supply agreement between EETPL and SSGC, tolling rate for additional 200mmcfd will be 0.175 $ per MMBTU, which is lowest in region and would reduce overall rate of 600mmcfg to 0.4799 $ per MMBTU.