Engro Elengy FSRU

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Engro Elengy FSRU, also known as Port Qasim Karachi LNG, is a floating storage and regasification unit (FSRU) operating in Sindh, Pakistan. As expansion project has been proposed.

Location

The terminal is located in a channel of the Indus River east of Karachi.

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Project Details

• Owner: Elengy Terminal Pakistan Limited (ETPL)
• Parent company: Engro 51%; Royal Volpak 49%
• Vessel name: Excelerate Exquisite
• Vessel owner: Excelerate Energy, Nakilat
• Vessel parent: Excelerate Energy, Nakilat
• Location: Port Qasim, Karachi, Sindh, Pakistan
• Coordinates: 24.7907232, 67.3688752 (exact)
• Capacity: 4.8 mtpa
• Status: Operating
• Type: Import
• Start year: 2015

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Engro Elengy FLNG Terminal is an import LNG terminal in Sindh, Pakistan. The terminal was proposed in 2014 and was completed in 2015. It has unloading capacity of 690 MMcf/d.

In July 2018 the Dutch company Royal Volpak acquired 29% ownership of the terminal for $38 million. In November 2018 Royal Volpak increased its ownership share to 44%.

Corruption allegations

In October 2018 two government ministers charged that the terminal had secured contracts at exorbitant rates and that the contracting process had not been transparent. In July 2019 former Prime Minister Shahid Khaqan Abbasi was arrested for abuses of power while serving as Minister of Petroleum and Natural Resource Development. Abbasi was charged with conducting noncompetitive bidding processes in developing the Engro Elengy terminal and steering a no-bid contract to a law firm with which he had personal ties.

Expansion Project Details

• Owner: Elengy Terminal Pakistan Limited (ETPL)
• Parent company: Engro 51%; Royal Volpak 49%
• Vessel name: Excelerate Sequoia
• Vessel owner: Excelerate Energy
• Vessel parent: Excelerate Energy
• Location: Port Qasim, Pakistan
• Coordinates: 24.769704, 67.334731 (estimate)
• Capacity: 5.9 mtpa
• Status: Proposed
• Type: Import
• Start year:
  • formerly 2022

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day; mmcfd = million cubic feet per day

Expansion Project: New Engro Elengy FSRU

In February 2020 Engro Elengy and Excelerate Energy signed an agreement for the construction of a new FSRU to be moored at the same location. Under the agreement, Excelerate will exchange its existing FSRU Exquisite with a newbuild FSRU, Excelerate Sequoia, currently employed on a short-term charter to PetroChina. The FSRU will increase the send-out capacity by more than 1 MTPA of LNG and increase LNG storage capacity from 150,900 m³ to 173,400 m³.The Engro FSRU Expansion will have a capacity of 5.9 mtpa.

As of January 2021, the project was awaiting government approval.

In June 2021, Pakistan media reported that the Pakistan government's Cabinet Committee on Energy had again failed to reach consensus on allowing Engro's LNG terminal to replace the existing Engro Elengy FSRU with the new expansion project as different stakeholders expressed their reservations about the move. One of these, Sui Northern Gas Pipelines Limited, voiced concern over possible disruption to gas supplies to power plants. The gas utility would have to pay damages if it could not provide gas to power plants which have "take-or-pay" agreements. The Energy Committee was seeking legal advice on the matter from the country's Law Division.

In January 2021, it was reported that Engro was awaiting government approval to bring in a FSRU for the project.

In December 2021, the Excelerate Sequoia, which had earlier been expected to serve as the Engro FSRU Expansion, began service in Brazil at Bahia FSRU.

There have been no updates in over two years, and the project was presumed to be shelved as of 2023.

In January 2024, Engro Elengy Terminal Limited (EETL) has asked the Special Investment Facilitation Council (SIFC) to help resolve the issues with Sui Southern Gas Company (SSGC) related to this expansion. The expansion proposal still involves bringing in a new FSRU for this project. However, at this time there was also a shortage of FSRUs globally resulting from Russia's invasion of Ukraine and the subsequent European gas crisis.