Universal Gas Distribution Company (UGDC) and leading Singapore based Commodity Multinational, Trafigura has reconfirmed their cooperation agreement for the terminal capacity and supply of LNG/Gas to UGDC.
Trafigura has a long-standing presence in Pakistan and it owns the excess capacity, which is the capacity not contracted by PLTL, in the terminal of Pakistan Gas Port Consortium Limited (PGPC). Trafigura will use some of capacity to import LNG and sell gas to UGDC.
The agreement was signed by CEO of UGDC Ghiyas Abdullah Paracha and Fadi Mitri, Business Development and Origination- LNG and Gas, Trafigura.
Officials of both the companies and Managing Director of BW LNG Yngvil Eriksson Asheim was also present. Her company has provided FSRU for the second LNG terminal.
UGDC and Trafigura cooperation is an example of how the private sector can be effective in satisfying the needs of the gas sector in Pakistan.
Speaking at the occasion, CEO of UGDC Ghiyas Paracha said that according to the ECC decision of July 2019 and Cabinet decision of August 2019 the private sector can use additional private capacity of LNG terminals.
This will not only help the government to save foreign exchange but also reduce the risk of the government while encouraging private sector and foreign investment, he added.
Ghiyas Paracha said that UGDC will not only buy gas from Trafigura but also plans to import LNG from other sources with Trafigura support. He said that we welcome the decision of the government to allow construction of five LNG terminals in the private sector.