Daewoo Gas has signed a Master EPCF (Engineering Procurement Construction and Finance) with China National Chemical Engineering Construction Company on Friday at a virtual ceremony attended by senior leadership of both companies. Under the terms of Master EPCF contract, CNCEC would design, construct and finance an offshore LNG terminal complete with topside equipment to enable LNG filling into ISO containers for use in Pakistan.
The specialized LNG containers will be moved by truck all over Pakistan where LNG will be re-gasified at client sites. At its peak, Daewoo Gas’ terminal will handle 10,000 metric tons of LNG per day, improve Pakistan’s energy supply, create thousands of jobs nationally, and reduce carbon emissions. The total foreign investment in this project including the terminal, facilities, LNG logistics and supply infrastructure is estimated to be USD 300 Million.
Daewoo Gas LNG project is a technological breakthrough, based on innovative design of transporting liquefied natural gas (LNG) on trucks and bowsers loaded with ISO tanks rather than through the pipeline system. This technology is referred to as “Virtual LNG” (VLNG) pipeline and is common in China.
Speaking at the agreement signing ceremony, Mr. Shahid Karim, Chief Executive Officer of Daewoo Gas said, “We are pleased to award the EPCF contract to CNCEC for building a state of the art VLNG Terminal for use in Pakistan. We plan on operationalizing the terminal within a year, before summer 2023, at Pakistan’s LNG zone in the Arabian Sea. We hope that with the commencement of this project Daewoo Gas will not only help meet the energy needs of Pakistan but also contribute towards upgrading of natural gas industry in the country with its innovative technology. LNG is the correct transition fuel for Pakistan from diesel and oil to renewables. We look forward to the continued cooperation of the Government of Pakistan to help us achieve the goal of delivering LNG to Pakistan’s industrial and domestic customers at the earliest.”