PSO Co. Planning To Build $500 Mln LNG Terminal

COMMODITIES(B-Trams):In an interview, Chief Executive Officer Syed Muhammad Taha stated that it would take four years to complete the import terminal, which would be near Karachi. He stated that the company has reached an agreement with a few significant customers and has begun the project’s preliminary preparations, which will include Pakistan’s first LNG storage facility.

After a decade of declining local production, the South Asian nation has been one of the fastest-growing markets for liquefied natural gas, which it primarily uses to generate electricity. However, Russia has struggled to pay for fuel this year due to rising costs, which have led to frequent blackouts. Russia’s war in Ukraine is one factor.

Taha stated on Friday in Karachi, “Prices will remain high as long as there is a geopolitical crisis in place, but eventually it will come down.” We’ll proceed as soon as the prices are favorable.

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Taha stated that Pakistan State Oil, the country’s largest company by revenue and owner of a network of 3,500 service stations, may seek a partner for the project. He didn’t say anything specific about the project’s size, whether it would be on land or on a floating platform, or when it might start working.

There are currently two floating LNG import terminals in the country, both close to Karachi. Pakistani terminal investments have also been mentioned by Qatar and Mitsubishi Corp.

This year, the country was severely impacted by the rise in fuel prices, and it is currently dealing with devastating floods made worse by climate change. It was able to get a bailout from the International Monetary Fund at the end of last month, but in order to get the money, it had to agree to raise domestic fuel prices.

Taha stated that Pakistan State Oil does not intend to purchase any additional fuel oil during the time that the year that began in July will see a decrease in demand for gasoline and diesel of between 5% and 7%. He said that the government is in talks with countries in the Middle East about long-term agreements that will cover about 80% of its needs for imported gasoline. These arrangements already exist for diesel and LNG in Pakistan.

Taha stated that the fuel retailer also intends to apply for a license to operate mobile wallets and eventually establish a digital bank. Additionally, it has allocated 1 billion rupees, or $17.4 million, to establish a venture capital fund.

Therefore, our objective is crystal clear going forward. We want to branch out into new areas.