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 4-Pakistan gives green light to five LNG terminal plans

Fri, 20th Sep 2019 06:39

(Adds Trafigura)

By Rod Nickel

ISLAMABAD, Sept 20 (Reuters) - Pakistan has given the
go-ahead to five consortiums, including Exxon Mobil,
Royal Dutch Shell and Mitsubishi, to progress
with their liquefied natural gas (LNG) terminal plans, a
minister told Reuters on Friday.

The move comes on the heels of the arrests of two Pakistan
business executives involved in building the country's previous
LNG terminals, cooling sentiment in the industry.

Pakistan is seen as a big growth market for the global LNG
industry as domestic gas production slips in tandem with a
growing industrial economy hungry for gas.

But an anti-corruption drive by Prime Minister Imran Khan
led to the arrests of a former boss of Engro, which
built the first import terminal, and the chief of another
company associated with a second terminal.

Power and Petroleum Minister Omar Ayub Khan downplayed any
impact the arrests may have had on investors' sentiment, saying
the interest from multinationals spoke for itself.

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

The groups approved to progress are Tabeer Energy, a unit of
Mitsubishi, Energas with partner Exxon; Pakistan GasPort and
commodities trader Trafigura; Engro with partner Shell, and
Gunvor with Pakistani conglomerate Fatima.

Tabeer Energy, Engro and Energas already announced plans for
the terminals which will be Floating Storage and Regasification
Unit (FSRUs) vessels. These can be newbuild or converted LNG
tankers, speeding up the delivery of the import projects.

Exxon and Shell did not respond to requests for comment.
Mitsubishi has project details on Tabeer Energy's website.
Engro, Fatima and GasPort were not immediately reachable for a
comment.

Trafigura declined to comment on the specific project but
said it was "committed to grow and expand its existing regas
(regasification) capacity" in Pakistan.

The five groups must submit plans for the terminals to the
ministry of ports and shipping by Nov. 5 for approval, but
cabinet has already approved them, Khan said, adding they could
be in operation within two to three years.

While the consortiums will pay for the construction of the
terminals and royalty fees, Pakistan's contribution will be to
fund the building of a $2 billion north-south pipeline to
distribute the gas, and storage facilities, he said.

SIGNIFICANT DENT

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

Its two LNG plants have a capacity of 4.5 million tonnes a
year (mtpa) each. Khan said a third 4.5 mtpa terminal could
start next year. Imports amounted to 6.7 mtpa in 2018 and are
set to rise to 7.9 mtpa this year, according to Refinitiv data.

The new terminals "will make a significant dent in the gas
shortage," Khan said.

But the under-utilisation of one terminal points to a
structural problem in Pakistan's energy industry, analysts have
said, which is characterised by subsidised but dwindling
domestic gas rivalling more expensive LNG.

"I think they are assessing the demand as the second LNG
terminal is currently underutilised," one industry source said.
"Domestic gas is cheaper and LNG is expensive. Plus we have some
coal plants which are cheaper than RLNG fired power plants."

The fertiliser industry, a large consumer of gas, has
suffered from a steep increase in government-set prices, Sher
Shah Malik, executive director of Fertiliser Manufacturers of
Pakistan Advisory Council, told Reuters.

Two of Pakistan's urea plants lack gas to run regularly and
one closed last year, forcing Pakistan to import fertiliser.
Malik said LNG, priced at international benchmarks, was often
too expensive for fertiliser companies pointing to a need to tap
new domestic gas reserves.

"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 and Jessica Jaganathan in Singapore;
editing by Tom Hogue, Jason Neely and David Evans)

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.