Daewoo Gas has signed a Master Engineering Procurement Construction and Finance (EPCF) contract with China National Chemical Engineering Construction Company (CNCEC) under which CNCEC would design, construct and finance an offshore LNG terminal.
The terminal would be complete with topside equipment to enable LNG filling into ISO containers for use in Pakistan. The specialized LNG containers will be moved by trucks all over Pakistan where LNG will be re-gasified at client sites.
According to a statement from Daewoo, “At its peak, Daewoo Gas’ terminal will handle 10,000 metric tons of LNG per day, improve Pakistan’s energy supply, create thousands of jobs nationally, and reduce carbon emissions.” The total foreign investment in this project including the terminal, facilities, LNG logistics and supply infrastructure is estimated to be $300 Million.
Shahid Karim, chief executive officer of Daewoo Gas, said, “We plan on operationalizing the terminal within a year, before summer 2023, at Pakistan’s LNG zone in the Arabian Sea.”
Daewoo Gas also plans to use the LNG in its own long-distance bus and truck fleet operated by Daewoo Express as a substitute for more expensive and polluting diesel.
CNCEC Chairman Hu Liufang said, “We welcome the award of this significant contract by Daewoo Gas and look forward to design and construct world largest VLNG terminal for offshore installation. This large and ambitious project represents the ideals of CPEC industrial cooperation and technology transfer between the brotherly countries of China and Pakistan.”
Sameer Chishty, chairman of Asiapak Investments, which is the holding company for Daewoo Gas, was present at the signing ceremony and said, “AsiaPak Investments is committed to innovative technology projects in Pakistan’s energy sector, a country with a significant energy need for industry and households. Through this VLNG project, AsiaPak Investments contributes to further strengthening Pakistan and China’s Iron Brotherhood. We are grateful to all the stakeholders especially OGRA, Port Regulators and Government of Pakistan for their encouragement and support, ensuring uninterrupted supply of affordable energy to the people of Pakistan.”
