Islamabad - The government has given go-ahead for setting up the second Liquefied Natural Gas (LNG) terminal facility in the country to expedite the shipments from Qatar, sources said.

The second LNG terminal facility will be established either at Gwadar Port or at Muhammad bin Qasim port Karachi. Tenders have already been floated and bidders are being shortlisted to pick the most suitable firm having vast expertise in setting up the LNG terminals.

Sources said that a consortium led by Pakistan GasPort Limited, a company of the Associated Group, has emerged as the lowest bidder in the tenders invited from investors interested in setting up the country’s second liquefied natural gas (LNG) terminal for handling imports.

Pakistan GasPort-led consortium included Fauji Oil Terminal and Distribution Company (Fotco). The proposed facility will handle 6000 million cubic feet of LNG per day that will be used to run power plants in order to generate 3,600 megawatts of electricity.

The move aims at promoting clean energy, and to replace oil based power generation that in return would save billions of rupees to the national exchequer.

Pakistan has already one LNG terminal facility at Port Qasim set up by Engro Energy Terminal Limited which started receiving LNG supplies in March last year.

Engro is receiving $0.6601 per mmbtu as the levelised (service) charge for handling a capacity of 400mmcfd.

Engro’s terminal has so far re-gasified and pumped over 77 billion cubic feet of gas into the national gas distribution network by converting approximately 1.7 million tons of imported LNG.

A total of 29 LNG shipments have so far berthed at the port in the last 13 months and all the imported LNG has been re-gasified and pumped into the SSGC system for further distribution.

After the continuous supply of LNG into the system, gas-based power plants are getting 250mmcfd, fertiliser plants 80mmcfd, CNG pumps 35mmcfd and textile industry is getting 35mmcfd.

Pakistan is currently receiving LNG supplies from two sources – Qatar and Gunvor. Every month three ships arrive from Qatar carrying an average of 300mmcfd, and one ship is sent by Gunvor bringing an average of 100mmcfd. They are delivering LNG at a rate of 13.37 percent of brent crude price.