Exxon Mobil, the US energy company plans to build its third largest LNG terminal as it has acquired a contract to supply liquid natural gas (LNG) to private-sector consumers. The terminal will be built in Karachi as a joint venture with Pakistan.
ExxonMobil, along with Pakistan’s exploration and production companies, recently dug a shoreline to search for hydrocarbon reserves in the Arabian Sea. But this effort has not been in vain.
Now, in a new venture with Energas consortium, the US firm is going to invest in setting up an LNG terminal in Pakistan.
ExxonMobil, the world’s largest publicly traded oil and gas firm, had an agreement with Universal Gas Distribution Company (UGDC) to supply LNG.
This came after the Pakistan Tehreek-e-Insaf (PTI) government allowed the private sector to utilise the idle capacity of existing LNG terminals and pipelines of public gas utilities. It will break the monopoly of public-sector companies and the private sector will be able to bring LNG at cheaper rates.Energas has been previously working with ExxonMobil as well in Pakistan. It is a buyers’ consortium with LNG demand from IPPs (independent power producers), cement, textile, and automobile manufacturing plants.
The consortium, which also includes Halmore, is planning to build a terminal in partnership with ExxonMobil. The winning company will have to pay a fee of $10 million. The terminal needs to be built within 24 months.
