Fail In New Liquid Natural Gas Terminal To Disrupt Gas Supplies for Several Days

LNG

LNG Liquid Natural Gas:

Pakistan’s second liquefied natural gas (LNG) re-gasification terminal at Port Qasim inaugurated by Prime Minister Shahid Khaqan Abbasi a fortnight ago suffered a serious technical fault at an underground pipeline, resulting in a failure to inject re-gasified LNG into the system, prompting multiple shipments to be cancelled or diverted, trade sources told Reuters.

Engineering professionals told PKonweb the fault could be related to quality of material used or workmanship– or both, and that mitigating measures are generally set out for such field-related issues.

 

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It occurred as LNG converted back into natural gas on board a floating import terminal was pumped through pipelines to the shore, two industry sources said.

It remains unclear if additional fixes to infrastructure will be needed that might delay the terminal’s restart, they said.

The fault may however lead to cancellation of a few lined-up cargoes over the next few weeks, sources said on Wednesday.

Two ships carrying LNG were reportedly waiting for delivery at the FSRU when the incident ruptured an underwater pipeline while building gas pressure from LNG from the third shipment.

The second LNG terminal has been developed by a consortium led by Pakistan Gas Port Ltd (PGPL) and built with an investment of $500 million.

Repercussions:

Due to the incident, several shipments are expected to either be canceled or diverted.

It will also increase the chances of low gas pressures in the winters, the time when gas is needed the most. It is worth mentioning that several towns in Punjab were already a victim of low gas pressure long before the incident.

A source working close to PGPL’s FSRU said the gas leak incident was so serious that an emergency mechanism was put in place. It would need a minimum of 10-15 days to reach the stage where it resolved the problem and again build the gas pressure back.

 

 

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