Skip to content
Search

Latest Stories

Exxon Mobil, Shell among others to build five LNG terminals in Pakistan

PAKISTAN has selected groups that include Exxon Mobil Corp and Royal Dutch Shell to build five liquefied natural gas (LNG) terminals as it aims to triple imports and ease gas shortages.

The terminals could be in operation within two to three years, Omar Ayub Khan, Pakistan's minister of power and petroleum, said in an interview on Friday (20).


Pakistan is chronically short of gas for power production and to supply manufacturers such as fertiliser makers, hobbling the country's economy.

"It will make a significant dent in the gas shortage," Khan said.

The groups selected to build terminals are Tabeer Energy, a unit of Mitsubishi Corp; Exxon and Energas; Trafigura Group and Pakistan GasPort; Shell and Engro Corp; and Gunvor Group and Fatima.

It was not immediately clear if the companies involved had made final investment decisions to proceed.

The five must submit plan details to the ministry of ports and shipping by November 5 for approval, but the cabinet has already approved them, Khan said.

Pakistan's two LNG terminals currently have 1.2 billion cubic feet per day of capacity, and a third expected to come online next year will add 600 million cubic feet per day, Khan said.

The country has sought bids for a 10-year LNG supply tender for the current terminals and the results will be announced in two to three weeks, Khan said.

It was unclear what capacity the five new terminals will have, but Khan said they could collectively triple Pakistan's LNG import capacity.

The arrests this summer of two LNG industry executives by the National Accountability Bureau raised some concerns about the risks of investing in Pakistan.

But Khan said the interest of five investment groups speaks for itself.

"That is a ringing endorsement that (Pakistan's) policies are clear and transparent," he said.

"It's a competitive market."

The cost of building the terminals and finding buyers for the gas will be up to the groups, and they will pay Pakistan a royalty based on volume, Khan said.

Pakistan's contribution will be funding construction of a $2 billion north-south pipeline to distribute the gas, and storage facilities, he said.

Pakistan's fertiliser industry has coped in the past year with a steep increase in government-set natural gas prices, Sher Shah Malik, executive director of Fertilizer Manufacturers of Pakistan Advisory Council, said in an interview on Thursday (19).

Gas is the main ingredient in the production of urea fertiliser.

Two of Pakistan's urea plants lack gas to run regularly, and one closed last year, forcing Pakistan to import fertiliser.

Since LNG is often too expensive for making fertiliser, the government should also expand domestic gas exploration before reserves are depleted, Malik said.

"We are heading for very difficult times," he said. "If nothing happens, we'll be high and dry."

(Reuters)

More For You

tata-steel-green

Artist’s impression of Tata Steel’s state-of-the-art Electric Arc Furnace facility being built in Port Talbot. (Image credit: Tata Steel)

Tata Steel

Tata Steel hires local firms for Port Talbot project, creating 300 jobs

TATA STEEL has appointed three South Wales contractors to support its £1.25 billion investment in green steelmaking at Port Talbot. The contracts will create over 300 skilled jobs in the local supply chain.

Bridgend-based Darlow Lloyd & Sons will oversee excavation, recycling, infrastructure, and drainage work for the transition to Electric Arc Furnace (EAF) steelmaking.

Keep ReadingShow less
 Survey Reveals More Britons Reducing Everyday Spending

About 43 per cent of consumers said they were cutting back on everyday purchases, while more than a third reported increasing their savings as a precaution. (Photo: Getty Images)

Getty Images

Survey shows more Britons cutting back on everyday expenses

CONSUMERS in the UK are reducing spending on everyday items as confidence in the economy declines ahead of chancellor Rachel Reeves’s spring statement, according to a KPMG survey.

The survey, conducted among 3,000 UK consumers, found that 58 per cent believed the economy was worsening in the three months to February, up 15 percentage points from the previous quarter, The Guardian reported.

Keep ReadingShow less
Morrisons Shuts Down 52 Cafes and 17 Convenience Stores

Morrisons is not alone in closing cafes

Getty Images

Morrisons announces closure of 52 cafes and 17 convenience stores

Supermarket giant Morrisons is set to close 52 cafes and 17 Morrisons Daily convenience stores, putting hundreds of jobs at risk. The closures come as part of a broader effort to streamline operations, enabling the company to focus on areas of the business where customers are perceived to derive the most value.

The closures will also affect various in-store services such as meat and fish counters, pharmacies, and all 18 of Morrisons’ market kitchens, which serve freshly made meals to take away. These changes are expected to roll out over the coming months, with around 365 employees facing potential redundancy. Although Morrisons has expressed its intention to redeploy affected staff, the job cuts remain a major concern for workers.

Keep ReadingShow less
23andMe

Many users trusted 23andMe with some of their most sensitive personal information

Getty Images

DNA data of millions at risk as 23andMe declares bankruptcy

The recent Chapter 11 bankruptcy filing by genetic testing company 23andMe has raised serious concerns about the privacy and security of the DNA data of millions of users. Founded in 2006, 23andMe has long been a leader in consumer genetic testing, offering individuals insights into their predisposition to various diseases and the possibility of connecting with unknown relatives. However, with the company now seeking buyers in bankruptcy proceedings, the sale of this genetic data has become a source of alarm for privacy advocates and experts.

Many users trusted 23andMe with some of their most sensitive personal information, their DNA. However, as the company faces financial struggles, privacy experts warn that the future handling of this data may be far less secure. Tazin Kahn, CEO of the nonprofit Cyber Collective, which promotes privacy and cybersecurity for marginalised groups, expressed deep concern about the potential consequences. “Folks have absolutely no say in where their data is going to go,” she said. “How can we be so sure that the downstream impact of whoever purchases this data will not be catastrophic?”

Keep ReadingShow less
uk construction

The construction sector accounts for around 6 per cent of gross domestic product and supports growth in other industries.

iStock

Government pledges £600 million to address construction skills gap

BRITAIN will invest £600 million to train construction workers and address skills shortages that could affect its plan to build 1.5 million homes by 2029 and support economic growth, the government announced on Saturday.

Housebuilding and infrastructure development are central to the Labour government’s growth strategy. The construction sector accounts for around 6 per cent of gross domestic product and supports growth in other industries.

Keep ReadingShow less