Commodity trading firm Trafigura will invest in a second liquefied natural gas (LNG) floating storage and regasification (FSRU) import terminal in Pakistan, as growing demand in the country is expected to lead to a 19 million tonnes per annum (MTPA) LNG supply shortage.
The new merchant FSRU will be developed by both companies again, and include a new jetty, berth and a second FSRU located at Port Qasim, Kallanish Energy learns. Further details of the project weren’t disclosed.
On Monday, Trafigura and its majority partner Pakistan GasPort Ltd (PGPL) inaugurated a new LNG FSRU at Port Qasim, Pakistan. The project more than doubles the country’s current LNG regasification capacity, supplying private buyers with 90 million cubic feet per day (MMcf/d) of gas.
The facility “is a vital step in meeting Pakistan’s growing demand for imported LNG, a cost effective and relatively clean fuel for power generation and an essential complement to diminishing supplies of domestically-produced gas,” said Trafigura.
The second FSRU will benefit from cost synergies and “offers the potential to turbo-charge import growth and rapidly scale up industrial use of LNG in the country,” said the world’s largest independent trader of LNG.
The joint venture set for the planned LNG import terminal will sell gas to private sector end-users without direct involvement from the Pakistani government. Trafigura’s strategy to invest in LNG infrastructure is key to opening up new markets.