KARACHI: Pakistan’s Energas is all set to start construction of Pakistan’s third Liquefied Natural Gas (LNG) terminal at a cost of $180 million after securing almost all regulatory approvals, the company’s chief executive officer said.
Energas was formed in 2017 as a buyers’ consortium to set up the country’s first and largest private LNG terminal. The project intends to provide LNG for associated businesses through a floating storage and regasification unit (FSRU).
“We are ready to start construction activity at the site for LNG terminal soon,” Energas CEO Anser Ahmed Khan said in an interview with Arab News this week.
Energas was granted a license to undertake regulated activity related to the sale of natural gas and regasified liquefied natural gas (RLNG) in Pakistan on January 12, 2021. The last steps now include getting an LNG terminal construction development license from the Oil and Gas Regulatory Authority and signing gas transportation agreements with two gas utilities, the Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL).
“We hope that the OGRA license will be granted by next month,” CEO Khan said.
With Pakistan becoming one of the fastest growing LNG markets since it first started importing in 2015, with imports rising to 8.4 million tons in 2019 from 6.8 million mt in 2018, analysts say there is an urgent need to speed up import capacity expansions, which have been planned to absorb incremental inflows.
S&P Global Platts Analytics forecasts LNG imports to rise to 9.3 million mt in 2021, if Pakistan can bring in another floating storage and regasification unit relatively quickly. Imports are expected to exceed 17 million mt by 2025.
The Energas LNG terminal will be constructed at Port Qasim in Karachi, with a capacity of 750 million cubic feet per day (mmcfd) to 1000 mmcfd, and is designed to accommodate a floating storage and regasification unit of approximately 170,000m3.
“The construction of the terminal would take 12 to 15 months to complete,” Khan, who previously worked as vice president for LNG at EDF Trading London, one of the largest utilities in the world, said, adding: “We initially plan to import two cargos per month.”
Energy-deficit Pakistan has only two LNG terminals operating at present, with a combined annual capacity of 1380 mmcfd. The capacity of both terminals has been contracted by the government. A fourth terminal, Tabeer Energy, is expected to start operations in the first quarter of 2023.
The country is currently suffering severe gas shortage, forcing many industrial units and power plants to look for alternates or halt operational activities.
“When we will go online with commercial activities, the efficiency of the country in terms of capacity would increase by 50 percent and the LNG value chain will get the required breathing space as it is currently on fragile footing due to limited storage and maximum capacity utilization,” Energas CEO said.
“We will directly buy LNG from producers and supply to our buyers’ consortium, comprising some of the largest business groups,” he said, adding: “When you have a consortium of customers running the chain, the risks associated with long-term LNG purchases are well spread and better managed.”
Natural Gas constitutes around 50% of Pakistan’s primary energy mix. The local production of gas is stagnant at 4 bmcfd for almost 10 years as compared to the constrained demand of 6 bmcfd and unconstrained demand of 8 bmcfd.
The Energas chief estimated that the demand for gas would continue to grow by 100-200 mmcfd per year which he said could only be “managed with greater involvement of the private sector.”
Spot LNG prices on Wednesday surged to a record high of $32.50 per mmbtu, according to S&P Global Platts, the price agency which issues Japan-Korea-Marker (JKM), a reference point used for spot deals in the region.
Last week Dubai’s state-owned Emirates National Oil Company Limited (ENOC) declined to deliver a liquified natural gas shipment to Pakistan for the end of February amid rising prices in the international market, as gas shortages continued to soar nationwide.
Energas all set to start construction of $180 mln Pakistani LNG terminal — CEO
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Energas all set to start construction of $180 mln Pakistani LNG terminal — CEO
- Energas was formed in 2017 to set up Pakistan’s first and largest private LNG terminal, will provide gas through a floating storage and regasification unit
- Company now awaiting LNG terminal construction license from OGRA and gas transportation agreements with two utilities to kick off construction work
Pakistan PM directs task force to propose budget plan for low-cost housing
- Pakistan faces a housing crisis, with the shortage particularly acute in urban areas
- PM says ahead of the budget low-cost housing is his administration’s top priority
ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday his administration is prioritizing the development of low-cost housing while directing a task force to present financing recommendations to include the facility in the upcoming budget.
Pakistan has been facing a housing crisis, with the World Bank suggesting two years ago it was short of an estimated 10 million housing units. The shortage is particularly acute in urban areas due to rapid population growth, unregulated expansion and high land and construction prices.
The federal budget, which will be presented to the National Assembly next month, is expected to outline measures to tackle the crisis as the new fiscal year begins in July.
“The government’s foremost priority is to facilitate access to housing through low-cost schemes,” Sharif said during a task force meeting to address the issue.
“Such projects will not only make residential units accessible to the common man but also stimulate economic growth and create employment opportunities,” he continued.
The prime minister instructed the task force to work with the finance ministry and banks to prepare detailed financing proposals for affordable housing, with the aim of making them part of the upcoming budget.
He also emphasized that developing the construction sector was key to sustainable economic growth.
Officials briefed the prime minister on ongoing reforms to the Condominium Act 2025 and Foreclosure Law, saying they were in their final stages and were expected to ease access to housing loans under the new schemes.
Pakistan says India using ‘terrorism’ as foreign policy tool after school bus attack in Balochistan
- New Delhi rejects Pakistan’s allegation, calls it an attempt to deflect responsibility for internal failures
- PM Sharif visits Balochistan after school bus bombing kills three children, leaves eight critically wounded
KARACHI: Pakistan urged the international community on Wednesday to condemn what it called India’s use of “terrorism” as a foreign policy tool, after a vehicle-borne improvised explosive device targeted a school bus in the southwestern Balochistan province, killing at least three children and injuring 39 others, including eight critically.
Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has long faced an insurgency led by separatist groups who accuse Islamabad of exploiting local resources while neglecting the population. The government denies the claims, citing investments in health, education and infrastructure.
In recent months, the insurgency has intensified, with groups like the Balochistan Liberation Army (BLA) carrying out high-casualty attacks on civilians and security forces, including taking hostages at a passenger train. Pakistan says it has evidence linking India to these attacks, though New Delhi has denied involvement and distanced itself from the Khuzdar school bombing.
However, Islamabad described the attack as a “sequel” to India’s missile and drone strikes earlier this month, accusing New Delhi of deploying militant proxies to destabilize the country, as Prime Minister Shehbaz Sharif and Field Marshal Asim Munir visited the region to meet injured children in hospital.
“These terrorist groups — masquerading under ethnic pretenses — are not only being exploited by India as instruments of state policy, but also stand as a stain on the honor and values of the Baloch and Pashtun people, who have long rejected violence and extremism,” said a statement issued by the PM Office after Sharif’s visit to Quetta.
“India’s reliance on such morally indefensible tactics, particularly the deliberate targeting of children, demands urgent attention from the international community,” it added. “The use of terrorism as a tool of foreign policy must be unequivocally condemned and confronted.”
The prime minister and the accompanying delegation was briefed by Balochistan’s Chief Minister Sardar Sarfraz Bugti and local military officials on the attack, which also killed two soldiers and injured 53 people in total.
The official statement said Pakistan’s security forces and law enforcement agencies “will relentlessly pursue all those involved in this barbaric act,” vowing to bring “the architects, abettors and enablers of this crime” to justice.
It added the incident had exposed India’s “cunning role” to the world, revealing how it orchestrated militant violence while simultaneously portraying itself as a victim.
India’s Ministry of External Affairs earlier in the day rejected Pakistan’s allegations, describing them as Islamabad’s attempt to deflect responsibility for its own failings and internal issues.
The latest attack follows a brief military standoff between the two countries earlier this month, which ended in a ceasefire on May 10.
While hostilities along the border have subsided, both sides continue to trade diplomatic barbs, accusing each other of sponsoring terrorism and destabilizing the region.
The attack in Khuzdar, which targeted children en route to an army-run school, was condemned by US Chargé d’Affaires Natalie Baker and UNICEF in separate statements.
It was also reminiscent of one of the deadliest militant attacks in Pakistan’s history when over 130 children were killed in a military school in the northern city of Peshawar in 2014. That attack was claimed by the Pakistani Taliban group.
India expels second Pakistani diplomat amid ongoing tensions
- India declares Pakistani diplomat persona non grata, orders him to leave the country within 24 hours
- India expelled another Pakistani diplomat on May 13, prompting a tit-for-tat response from Islamabad
ISLAMABAD: India has expelled a second Pakistani diplomat within ten days, declaring him persona non grata for activities “not in keeping with his official status,” the external affairs ministry in New Delhi announced on Wednesday.
The move comes amid heightened tensions between the two countries following a military standoff earlier this month. Despite a ceasefire agreement reached on May 10, diplomatic relations between the nuclear-armed neighbors remain strained.
“The Government of India has declared a Pakistani official, working at the Pakistan High Commission in New Delhi, persona non grata for indulging in activities not in keeping with his official status in India,” the Indian ministry said in its statement.
“The official has been asked to leave India within 24 hours,” it added.
This is the second such expulsion in recent weeks. On May 13, India expelled a Pakistani diplomat on similar grounds. In response, Pakistan declared an Indian High Commission staffer in Islamabad persona non grata.
The Indian ministry also summoned the Charge d’Affaires of the Pakistan High Commission to issue a demarche, emphasizing that Pakistani diplomats must not “misuse their privileges and status in any manner.”
As of now, Pakistan’s foreign office has not responded to the latest development.
Pakistan’s health minister assures Palestinian counterpart of medical support
- Syed Mustafa Kamal meets Dr. Maged Abu Ramadan at the World Health Assembly in Switzerland
- Israel has repeatedly targeted hospitals and health workers in Gaza, causing international concern
ISLAMABAD: Pakistan’s health minister Syed Mustafa Kamal informed his Palestinian counterpart that a framework has been developed to provide medical assistance to the people of Gaza, according to an official statement on Wednesday, during a meeting on the sidelines of the 78th World Health Assembly in Switzerland.
Kamal’s meeting with the Palestinian health minister, Dr. Maged Awni Muhammad Abu Ramadan, took place at a time when Israeli forces have repeatedly targeted hospitals and health facilities in Gaza, crippling the enclave’s health care system.
Israeli attacks have also led to international concern over violations of humanitarian norms in the war-torn Palestinian territory.
“We stand with our Palestinian brothers and will provide all possible medical support to heal their wounds,” the health ministry quoted Kamal as saying.
He strongly condemned Israel’s targeting of hospitals and health care workers, urging the international community to take concrete action to end the atrocities against Palestinians, including women and children.
“The brutality and oppression must stop,” he was quoted as saying. “The world must hold Israel accountable.”
Earlier this week, Pakistan condemned Israel’s targeting of hospitals in Gaza and described its announcement of taking control of the entire Palestinian territory as a “grave threat” to regional peace.
The remarks by the Pakistani foreign office came after Israeli Prime Minister Benjamin Netanyahu declared his government wanted to take control of the Gaza Strip.
Pakistani military blames ‘Indian-sponsored’ militants for children’s death in northwest this week
- Protests broke out in North Waziristan after a suspected drone strike reportedly led to the killings of four children
- The military says initial investigations have revealed the incident was carried out by ‘Fitna Al Khwarij’ militants
ISLAMABAD: Pakistan’s military on Wednesday denied responsibility for the death of four children in North Waziristan earlier this week, attributing the incident to a proscribed militant network which it said was operating on “the behest of their Indian masters.”
The incident occurred on May 19 in the Hurmuz village of Mir Ali tehsil, where a suspected drone strike reportedly led to the death of four children from the same family and injuries to five others, including a woman.
The tragedy sparked protests in the area, with locals staging a sit-in and refusing to bury the deceased until authorities provided clarity on the incident and ensured accountability for the loss of innocent lives.
In a statement released on Wednesday, the Inter-Services Public Relations (ISPR), the military’s media wing, dismissed allegations implicating Pakistan’s security forces in the strike, labeling the accusations as “entirely baseless” and part of a “coordinated disinformation campaign” aimed at discrediting the military’s counterterrorism efforts.
“Initial findings have established that this heinous act has been orchestrated and executed by Indian-sponsored Fitna Al Khwarij,” the statement said, using a term commonly employed by Pakistani authorities to describe extremist factions like the Tehreek-i-Taliban Pakistan (TTP).
The term “khwarij” is rooted in early Islamic history and refers to an extremist sect that declared other Muslims apostates.
“It is evident that these elements — acting at the behest of their Indian Masters — continue to exploit civilian areas and vulnerable populations as shields to conduct their reprehensible acts of terrorism,” the statement added. “Such tactics aims to unsuccessfully sow discord between the local population and the security forces, who together remain resolute to uproot the menace of terrorism.”
The military also reaffirmed its commitment to bringing the perpetrators to justice, emphasizing its ongoing efforts to combat militant violence in the region.
