Engro expects second LNG terminal completion by 2019, and plans for third
Engro Corp, a Pakistani conglomerate, anticipates that its second liquefied natural gas (LNG) terminal will be completed in early 2019.
The country is heavily betting on LNG imports to curb energy shortages, according to Reuters.
Pakistan’s first LNG terminal was built in 2015 by Engro, and with the completion of the second one in sight, the company are finalising plans for a third.
Engro are discussing plans for the 4.5mn tonnes per year project with Royal Dutch Shell, Fatima Group, and Gunvor – a trading house.
“The technical studies are all done. We are looking at early 2019 (to complete the project) if everything goes right,” Chief Executive of Engro’s LNG unit, Elengy Terminal Pakistan, Jahangir Piracha told Reuters.
Mr Piracha reported that his consortium should be signing a final investment decision (FID) within the next few months.
Following Prime Minister Shahid Khaqan Abbasi’s reorientation of the nation’s gas energy policy, several companies are looking for partners in order to build terminals.
Later this month, a second terminal is expected to come online; this should moderate the gas shortage issues that the country has had for over a decade.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.