ExxonMobil, the US-based multinational oil and gas corporation, has decided not to continue with its plans to set up an LNG (Liquefied Natural Gas) terminal in Pakistan, as the company seeks to reduce its capital and operating expenses.
ExxonMobil has exited from the consortium of Energas Terminal Private Limited that was setting up an LNG terminal in Pakistan.
“ExxonMobil is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions and commodity price decreases,” said Exxon spokesperson while talking to Business Recorder.
He added that this is part of the company’s ongoing review to find further efficiencies and strengthen the company for the future. “(However) the decision does not impact our Downstream and Chemical business in Pakistan, and future investment opportunities in Pakistan will be evaluated,” he added.
Meanwhile, two new terminal operators i.e. Energas Terminal Private Limited and Tabeer Energy Private Limited had accepted the terms and condition and deposited to set of terminals.
It is pertinent to mention that some time ago ExxonMobil, in collaboration with Pakistan’s an exploration and production companies, drilled an offshore well to search for hydrocarbon reserves in the Arabian Sea. However, the effort could not prove successful.
However, in 2019 it formed a new venture with the Energas consortium and decided to invest in setting up an LNG terminal in Pakistan.
ExxonMobil, the world’s largest publicly traded oil and gas firm, also inked an agreement with Universal Gas Distribution Company (UGDC) for LNG supply after the present Pakistan Tehreek-e-Insaf (PTI) government allowed the private sector to utilize the idle capacity of existing LNG terminals and pipelines of public gas utilities.
At present, two LNG terminals with a total capacity of 1.3 billion cubic feet per day (bcfd) are operational.
