Tabeer LNG Terminal

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Tabeer LNG Terminal is a proposed LNG import terminal in Port Qasim, Pakistan.[1]

Location

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Project Details

Phase 1

  • Operator:
  • Owner: Tabeer Energy (Pvt) Ltd, Tabeer Energy Marketing (Pvt) Ltd[1][2]
  • Parent company: Bison Energy FZCO[2]
    • Formerly Mitsubishi Corporation[1]
  • Location: LNG Zone at Chhan Wadoo-Chara Creek, Port Qasim, Pakistan[1]
  • Coordinates: 24.72, 67.21 (approximate)
  • Capacity: 750 mmcfd (5.7 mtpa) (total for both phases)[3]
  • Status: Proposed[3]
  • Type: Import
  • Cost: USD $500 million (both phases)[4]
    • formerly: over US$1 billion[5]
  • Start year:
    • formerly: 2023[6]

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

Phase 2

  • Operator:
  • Owner: Tabeer Energy (Pvt) Ltd, Tabeer Energy Marketing (Pvt) Ltd[1][2]
  • Parent company: Bison Energy FZCO[2]
    • Formerly Mitsubishi Corporation[1]
  • Location: LNG Zone at Chhan Wadoo-Chara Creek, Port Qasim, Pakistan[1]
  • Coordinates: 24.72, 67.21 (approximate)
  • Capacity: 750 mmcfd (5.7 mtpa) (total for both phases)[3]
  • Status: Proposed[3]
  • Type: Import
  • Cost: USD $500 million (both phases)[4]
    • formerly: over US$1 billion[5]
  • Start year:
    • formerly: 2023[7]

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

Background

FSRU proposal (cancelled)

Mitsubishi's Tabeer Energy has proposed developing an FSRU in Port Qasim, Pakistan.[1] The company was granted a license to develop the terminal through the LNG Policy of 2011.[5] The availability of pipeline capacity to receive imported gas is in question, and has been one of the factors delaying a final investment decision (FID).[8]

Tabeer Energy is seeking to serve private sector customers and import gas without liability to the government. The terminal would be the first fully integrated terminal where LNG imports, re-gasification, and sales would be handled by a private sector company.

Construction of the project is expected to take 25 months.[5]

Pakistan's Oil & Gas Regulatory Authority (OGRA) granted a marketing license to Tabeer Energy in January 2021 for the resale of regasified liquefied natural gas (RLNG). The license is valid for 10 years.[5]

In September 2023, the Competition Commission of Pakistan greenlit the acquisition of Tabeer Energy Ltd by the UAE firm Bison Energy FZCO.[2]

As of June 2024, it appears that the FSRU proposal has been cancelled and the company is instead intending to use a two-phase approach outlined in the section below.

Virtual liquefied natural gas (VLNG) proposal

In December 2023, the China National Chemical Engineering Company (CNCEC) and LNGFlex Limited signed a Master Engineering Procurement Construction and Finance (EPCF) contract to set up a virtual LNG supply network and a long-distance pipeline gas supply chain in Pakistan.[3] Under the terms of the contract, CNCEC will be responsible for the design, construction, and financing of both phases of the project.[3] The investment contract totals $500 million.[4]

The project is expected to be carried out in two phases:

Phase 1 will include construction of a VLNG network, including an LNG receiving terminal, on-shore LNG storage, and procurement of a fleet of ISO trucks. Phase 1 is expected to start construction by the last quarter of 2024.[3]

Phase 2 includes construction of a gasification facility and a long-distance pipeline; it is expected to receive a Final Investment Decision (FID) by 2025.[3]

Upon completion, the project is projected to supply a peak capacity of 750 mmcfd.[4]

Environmental and social impacts

The Indus Consortium has conducted an analysis of the 2018 Environmental and Social Impact Assessment (ESIA) conducted for Tabeer Energy. The organization noted that the EISA was undertaken as a compliance document and does not take a critical perspective on the issues likely to arise due to the construction of Tabeer Energy FSRU. The terminal is located on a diverse wetland; in a seismic zone with a possibility of moderate to major seismic hazards; and in a region with mangrove trees already damaged by anthropogenic activity. The ESIA considers emissions, but it is unclear whether these emissions are Scope 1, 2, and/or 3.

Finally, the Indus Consortium noted that the report does not include feedback from local communities. Nearby coastal communities, including the 400-year old fishing village Rehri, depend on the economic and ecological services provided by that natural ecosystem of mangrove forests and mudplains for their livelihoods and survival. These communities are already expecting to face more hardships in the future due to anthropogenic activities, including poor fish yields, increased pollution in the water, and displacement of mud and waste.[5]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Mitsubishi’s subsidiary plans to set up LNG terminal, Business Recorder, January 20, 2021
  2. 2.0 2.1 2.2 2.3 2.4 "Pakistan's competition commission approves UAE-based firm's acquisition of two LNG companies". Arab News. 2023-09-30. Retrieved 2023-10-03.
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 "Consumers may pay too high a price for virtual LNG 'pipelines' in Pakistan". Institute for Energy Economics and Financial Analysis (IEEFA). Mar 21, 2024. Retrieved Jun 26, 2024.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 4.2 4.3 "$500m secured for LNG projects". The Express Tribune. Dec 6, 2023. Retrieved Jun 26, 2024.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 Indus Consortium. Tabeer LNG Terminal. Accessed December 2022.
  6. "Energas all set to start construction of $180 mln Pakistani LNG terminal — CEO". Arab News PK. 2021-01-20. Retrieved 2022-07-29.
  7. "Energas all set to start construction of $180 mln Pakistani LNG terminal — CEO". Arab News PK. 2021-01-20. Retrieved 2022-07-29.
  8. Recorder Report (2021-11-14). "Delay in setting up of merchant LNG terminals: Ogra identifies certain bottlenecks". Brecorder. Retrieved 2022-07-29.