LNG: Excelerate confirms Shell-backed Pakistan FSRU

Ruth Liao

01-Feb-2017

US-based Excelerate Energy has announced the development of a new floating storage regasification unit (FSRU) in Pakistan with a consortium comprising Anglo Dutch Shell, terminal operator Engro and fertiliser company Fatima.

The Shell consortium’s project is expected to come online in 2018, Excelerate said in a 31 January statement. The FSRU, which was not named by Excelerate, would be located across the Port Qasim channel.

This would be a fourth FSRU supplied to Pakistan in just four years.

Excelerate was the provider of the 151,000 cubic metre Exquisite FSRU, Pakistan’s first import terminal, which first arrived into Port Qasim in March 2015.

A spokeswoman for Excelerate said discussions were ongoing to determine whether an existing vessel, a conversion or a newbuild would be best suited for the Pakistan project.

Excelerate said that once the company’s second FSRU was online in Pakistan, regasification capacity would reach more than 1 billion cubic feet (bcf)/day, or about 28 million cubic metres/day, enough to support more than 6GW of power generation.

It was unclear whether the consortium with Engro, Shell and Fatima were in any term supply discussions. A spokesperson for Shell could not be reached before publication.

The import consortium Pakistan LNG recently awarded two tenders for mid-term and long-term supply destined for another FSRU project.

Italian-based Eni was awarded the 15-year supply starting from June 2017, while Swiss trading company Gunvor was awarded to supply a five-year term starting in the same month.

The LNG will be delivered to a new FSRU to be supplied by BW Group under a 15-year contract.

Singapore-based BW recently held a naming ceremony for the FSRU, called the BW Integrity. The project is scheduled to be in operation by June 2017, a BW Group spokeswoman confirmed on 31 January.

Global Energy has also signed a deal with Norway’s Hoegh for what would be a fourth FSRU.

Hoegh last said in December 2016 that its FSRU was scheduled for the second quarter of 2018. In June 2016, Global Energy signed a long-term, 1.3mtpa LNG supply contract with Qatargas to start in 2018.

Under the terms of the contract, the volumes, which would come from Qatargas 2, could step up to 2.3mtpa, according to Qatargas. ruth.liao@icis.com

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