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    Pakistan Eases FSRU Import Rules: Press

Summary

Federal Board of Revenue (FBR) has issued a statutory regulatory order (SRO) for waiving taxes and duties on import of floating LNG units.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquified Natural Gas (LNG), Corporate, Import/Export, Investments, News By Country, Pakistan

Pakistan Eases FSRU Import Rules: Press

The Pakistani government has exempted import of new floating storage and re-gasification units (FSRUs) from duties and taxes, The Express Tribune reported July 19.

This decision by the government will allow Engro Elengy Terminal Pakistan to replace the existing unit, Exquisite, with a new one with additional capacity. The LNG terminal presently in operation has a handling capacity of 690mn ft3/day whereas the new FSRU would have capacity of 790mn ft3/d, the newspaper said. Engro had brought an old vessel, which had been used in Kuwait for five years.

Federal Board of Revenue (FBR) has issued a statutory regulatory order (SRO) for waiving taxes and duties on temporary import of floating LNG units, The Express Tribune reported.

With domestic gas production stagnant, Pakistan has been relying on LNG to meet the growing gas demand. Pakistan started importing LNG in 2015 with the commissioning of the Exquisite FSRU, located at Port Qasim. Pakistan commissioned its second FSRU in late 2017. The south Asian nation is now planning to set up the third terminal at Port Qasim. The Economic Coordination Committee of Pakistani cabinet July 3 approved the resolution of the Port Qasim Authority board to allow amendment in its master plan to accommodate the prospective third LNG terminal at Port Qasim near Karachi.

At present, the two LNG terminals are supplying about 1,100mn ft3/d of regasified LNG to customers downstream. Of this, the power sector is consuming 790mn ft3/d and the fertiliser industry 180mn ft3/d, an official told the newspaper.