Pakistan, China in talks to have LNG terminal at Gwadar

ISLAMABAD: The experts from China and Pakistan are currently in hectic talks for installing the LNG terminal at Gwadar for 600 MMCFD (million cubic feet gas per day which will be built on government to government basis with the hope that the project will be completed at the cost of $250-300 million.
The crucial talks with Chinese officials erecting LNG terminal for the last three days are underway with the hope that the cost of terminal would be finalized at $250 million.
The same company that is to lay down the 700 kilometer LNG pipeline from Gwadar to Nawabshah will also construct the LNG 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 Pakistan side wants the cost of LNG terminal should be at $250 million.
If it is finalised at the cost desired by Pakistan, then the whole cost of LNG pipeline and LNG terminal will stand at $1.6 billion.
China Pipeline Petroleum Bureau (CPPB)—subsidiary of China National Petroleum Company (CNPC) will set up the LNG terminal.
China Pipeline Petroleum Bureau is the same company that is to lay down the 700 kilometre Gwadar-Nawabshah pipeline.
The project will be materialised with the loan at 2 per cent 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 official said that the ministry of petroleum and natural resources is trying from pillar to post to get the project included in CPEC projects list as the ministry wants the project be included in the property list of CPEC. Planning commission to this effect has taken up the issue with Chinese officials.
“In case, the project is not included in CPEC project, even then the ministry will ask the government to extend the exemption of taxes and duties and provision of special security to LNG pipeline and LNG terminal project as is being provided to all CPEC project,” the official added saying: “If the exemption of taxes and duties are granted, then the project’s cost of whole project would stay at $1.6 billion.” Staff Reporter