ISLAMABAD: Daewoo Gas has signed a Master EPCF (Engineering Procurement Construction and Finance) contract with China National Chemical Engineering Construction company, Friday at a virtual ceremony attended by senior leadership of both companies.
Under the terms of Master EPCF contract, the CNCEC would design, construct and finance an offshore LNG terminal complete with topside equipment to enable LNG filling into ISO containers for use in Pakistan. The specialized LNG containers will be moved by truck all over Pakistan where LNG will be re-gasified at client sites.
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 USD 300 million.
Daewoo Gas LNG project is a technological breakthrough, based on innovative design of transporting liquefied natural gas (LNG) on trucks and bowsers loaded with ISO tanks rather than through the pipeline system. This technology is referred to as “Virtual LNG” (VLNG) pipeline and is common in China.
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Speaking at the agreement signing ceremony, Shahid Karim, Chief Executive Officer of Daewoo Gas said, “We are pleased to award the EPCF contract to CNCEC for building a state of the art VLNG Terminal for use in Pakistan. We plan on operationalising the terminal within a year, before summer 2023, at Pakistan’s LNG zone in the Arabian Sea. We hope that with the commencement of this project Daewoo Gas will not only help meet the energy needs of Pakistan but also contribute towards upgrading of natural gas industry in the country with its innovative technology. The LNG is the correct transition fuel for Pakistan from diesel and oil to renewables. We look forward to the continued cooperation of the Government of Pakistan to help us achieve the goal of delivering LNG to Pakistan’s industrial and domestic customers at the earliest.”
For the first time in Pakistan, Daewoo Gas will develop a gas supply-chain in parallel to the fixed pipeline supply network at no risk or cost to Government of Pakistan. Facilitating re-gasification at their sites, all customers nationwide will be supplied gas through specialized LNG tanker trucks. This project would go a long way to give gas consumers a choice of supply apart from piped gas and augment the Government’s efforts to optimize gas supply to far-flung areas that are not connected to the national gas transmission network. 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.
Chairman of CNCEC 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 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.”