Islamabad—The Nawaz government has decided to provide 100 million cubic feet LNG per day to Gwadar from the RLNG terminals of 1.2 bcfd (billion cubic feet gas per day) to be installed at the Gwadar port. And 150 mmcfd gas will also be provided to Gwadar once the Iran will start exporting 750 mmfcd gas to Pakistan, a senior official told Pakistan Observer.
Both the RLNG and gas from Iran will be transported to the national grid under Gwadar-Nawabshah RLNG pipeline. So Gwadar will get in to 250 mmcfd gas through the RLNG pipeline and the decision has been taken on the request of government of Balochistan to cater to the energy needs of the port city.
China will install two RLNG terminals at Gwadar with the capacity to re-gasify the LNG of 1.2 billion cubic feet per day (bcfd) at just the cost of $330 million.
Each RLNG terminal will be having the capacity to re-gasify 600 mmcfd. This will increase the economic viability of the 700 kilometre RLNG pipeline to be laid down by the Chinese company from Gwadar to Nawabshah, top official sources told Pakistan Observer.
Earlier, the sources said, the government’s plan to build one RLNG terminal at Gwadar with capacity of 600mmcfd at the cost of $300 million, but later on Chinese authorities’ offered to build another terminal with the same capacity at Gwadar and both will cost at $330 million.
At the very outset, the project was conceived under BOT (built, operate and transfer) basis, but now under latest scenario, it will now be erected under EPC-Financing mode.
China Pipeline Petroleum Bureau (CPPB) that has been assigned to build the 700 kilometres LNG pipeline from Gwadar to Nawabshah will also construct the two RLNG terminal.
The LNG pipeline will be constructed at the cost of $1.353 billion. Now the Price Negotiating Committee is engaged with Chinese experts on the cost of LNG terminal.
The project will be materialized with the loan at 2 percent interest for 20 years long period to be arranged from China EXIM bank by the China Pipeline Petroleum Bureau. To a question, the official said that the cost of $1.6 billion of both (pipeline and LNG terminal) has been worked out without taxes and duties.
The Gwadar-Nawabshah pipeline will be built on EPC-F (engineering procurement construction) with financing mode. The executive committee of national economic council (ECNEC) has already approved the said pipeline with 85 per cent financing from China and 15 per cent financing to be arranged by the government of Pakistan.