Lahore: The Gwadar GasPort Limited (GGPL) on Monday announced its decision to invest USD 94.04 million in a ‘virtual pipeline’ network to distribute imported liquefied natural gas (LNG) to industrial and other private sector consumers through cryogenic bowsers, a news source reported on March 16.
To this effect, a senior official of the GGPL stated that the company intends to commission the terminal by November ‘subject to issuance of a provisional licence from the Oil & Gas Regulatory Authority (OGRA) and other regulatory approvals’.
GGPL is a joint venture between Pakistan GasPort, Al-Qasim Gas, and Jamshoro Joint Venture and has reached an understanding with Gwadar International Terminals for utilizing Berth 3 at the Gwadar Port. It plans to ‘import LNG on a Floating Storage Unit (FSU) of 20,000cbm capacity for delivering the fuel to tankers for onward distribution to the individual customers in the CNG, industrial and housing sectors’, according to a company document seen by the news source.
The GGPL executive said that special purpose trucks will be used to transport LNG to industrial clients following OGRA’s approval. He added that the initiative is projected to generate USD 1 billion in terms of annual revenue.
According to the company document, the company will invest USD 24.04 million or 54% of the total investment on lease equipment. Following the commencement of its operations, the pipeline utility will transport 100mmcfd in the first year, 200mmcfd in the second year, and 300mmcfd in the third year.
