Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 2-Exxon Mobil, Shell among groups picked to build 5 Pakistan LNG terminals

Fri, 20th Sep 2019 06:39

(Adds detail on plans, import capacity, fertiliser group quote)

By Rod Nickel

ISLAMABAD, Sept 20 (Reuters) - Pakistan has selected groups
that include Exxon Mobil Corp and Royal Dutch Shell
to build five liquefied natural gas (LNG) terminals as
it aims to triple imports and ease gas shortages.

The terminals could be in operation within two to three
years, Omar Ayub Khan, Pakistan's minister of power and
petroleum, said in an interview on Friday.

Pakistan is chronically short of gas for power production
and to supply manufacturers such as fertiliser makers, hobbling
the country's economy.

"It will make a significant dent in the gas shortage," Khan
said.

The groups selected to build terminals are Tabeer Energy, a
unit of Mitsubishi Corp; Exxon and Energas; Trafigura
Group and Pakistan GasPort; Shell and Engro Corp; and
Gunvor Group and Fatima.

It was not immediately clear if the companies involved had
made final investment decisions to proceed.

The five must submit plan details to the ministry of ports
and shipping by Nov. 5 for approval, but cabinet has already
approved them, Khan said.

Pakistan's two LNG terminals currently have 1.2 billion
cubic feet per day of capacity, and a third expected to come on
line next year will add 600 million cubic feet per day, Khan
said.

The country has sought bids for a 10-year LNG supply tender
for the current terminals and the results will be announced in
two to three weeks, Khan said.

It was unclear what capacity the five new terminals will
have, but Khan said they could collectively triple Pakistan's
LNG import capacity.

The arrests this summer of two LNG industry executives by
the National Accountability Bureau raised some concerns about
the risks of investing in Pakistan.

But Khan said the interest of five investment groups speaks
for itself.

"That is a ringing endorsement that (Pakistan's) policies
are clear and transparent," he said. "It's a competitive
market."

The cost of building the terminals and finding buyers for
the gas will be up to the groups, and they will pay Pakistan a
royalty based on volume, Khan said.

Pakistan's contribution will be funding construction of a $2
billion north-south pipeline to distribute the gas, and storage
facilities, he said.

Pakistan's fertiliser industry has coped in the past year
with a steep increase in government-set natural gas prices, Sher
Shah Malik, executive director of Fertilizer Manufacturers of
Pakistan Advisory Council, said in an interview on Thursday.

Gas is the main ingredient in production of urea fertiliser.

Two of Pakistan's urea plants lack gas to run regularly, and
one closed last year, forcing Pakistan to import fertiliser.

Since LNG is often too expensive for making fertiliser, the
government should also expand domestic gas exploration before
reserves are depleted, Malik said.

"We are heading for very difficult times," he said. "If
nothing happens, we'll be high and dry."
(Reporting by Rod Nickel in Islamabad; additional reporting by
Sabina Zawadzki in London; editing by Tom Hogue and Jason Neely)

More News
17 Nov 2021 14:52

EXECUTIVE CHANGES: Deliveroo adds Flutter CEO to board; new Quarto CEO

EXECUTIVE CHANGES: Deliveroo adds Flutter CEO to board; new Quarto CEO

Read more
17 Nov 2021 10:07

UPDATE 1-LNG industry launches 'carbon neutral’ framework

(Adds context, rics to wider audience)By Susanna Twidale and Marwa RashadLONDON, Nov 17 (Reuters) - An international liquefied natural gas (LNG) body on Wednesday launched a framework for rules to declare cargoes carbon neutral as it seeks to make ...

Read more
17 Nov 2021 08:01

Russia's Rosneft acquires Shell's 37.5% stake in German refinery PCK Schwedt

MOSCOW, Nov 17 (Reuters) - Russian oil giant Rosneft has acquired Shell's 37.5% stake in German refinery PCK Schwedt, it said on Wednesday, exercising an option to buy and taking its shareholding to 91.67%.Italy's Eni holds a 8.33% stake in the re...

Read more
15 Nov 2021 18:56

North American natgas traders form company to better process trades

Nov 15 (Reuters) - A group of North American natural gas trading firms said on Monday they formed a new company called Eleox to manage post-trade processes more efficiently.The firms include units of BP PLC, Castleton Commodities International LLC...

Read more
15 Nov 2021 18:22

North Sea Crude-Forties steady, Brent diff edges lower

LONDON, Nov 15 (Reuters) - The North Sea Forties crude differential held steady on Monday while Brent slipped after two deals.* Royal Dutch Shell said on Monday it would scrap its dual share structure and move its head office to Britain from the ...

Read more
15 Nov 2021 17:10

LONDON MARKET CLOSE: Miners weigh on FTSE 100; Shell simplifies

LONDON MARKET CLOSE: Miners weigh on FTSE 100; Shell simplifies

Read more
15 Nov 2021 13:41

Shell shake-up leaves Dutch royally hacked off

By Toby SterlingAMSTERDAM, Nov 15 (Reuters) - Royal Dutch Shell's decision https://www.reuters.com/world/uk/shell-proposes-single-share-structure-tax-residence-uk-2021-11-15 to move its corporate headquarters and tax base to London may win over sha...

Read more
15 Nov 2021 12:37

GLOBAL MARKETS-Upbeat China data bolsters sentiment, oil tumbles

* China data lifts sentiment, boosts Aussie dollar* Sentiment in Europe tempered by rising COVID infections* Oil prices down more than 1%* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn* Graphic: World FX rates http://tmsnrt.rs/2egbfVh (...

Read more
15 Nov 2021 12:16

Shell to move head office to the UK, drop dual share structure

(Sharecast News) - Royal Dutch Shell is to overhaul its complex corporate structure, including shifting its headquarters to the UK and changing its name.

Read more
15 Nov 2021 12:04

LONDON MARKET MIDDAY: Caution sets in ahead of UK inflation, jobs data

LONDON MARKET MIDDAY: Caution sets in ahead of UK inflation, jobs data

Read more
15 Nov 2021 11:05

TOP NEWS SUMMARY: Shell simplifies; BBVA and Heineken buy

TOP NEWS SUMMARY: Shell simplifies; BBVA and Heineken buy

Read more
15 Nov 2021 10:43

UPDATE 2-European stocks clock fresh record highs; miners slide

* STOXX 600, DAX, CAC 40 hit record highs* Airbus boosts French stocks* BBVA drags down Spanish benchmark index (Adds comments, updates prices throughout)By Anisha Sircar and Shreyashi SanyalNov 15 (Reuters) - European shares hit another record peak...

Read more
15 Nov 2021 10:07

UPDATE 2-Cineworld, CMC markets help UK midcaps outperform bluechip FTSE 100

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Shell climbs on plans for single-share structure* CMC soars on plans to split into two* Cineworld jumps on box office revenue recovery* FTS...

Read more
15 Nov 2021 09:37

UPDATE 1-Dutch government 'unpleasantly surprised' by Shell HQ move to Britain

(Updates with details of Dutch tax issues)AMSTERDAM, Nov 15 (Reuters) - The Dutch government said on Monday it was "unpleasantly surprised" by news that Royal Dutch Shell PLC is planning to move its headquarters to London from The Hague."The Cabin...

Read more
15 Nov 2021 09:01

Key takeaways from the Shell restructuring plan

Nov 15 (Reuters) - Royal Dutch Shell will simplify its business by scrapping its dual share structure and change its name to Shell Plc, the company said on Monday, also shifting its tax residence to Britain from the Netherlands.** Shareholders wil...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.