The consortium between Höegh LNG, Qatar Petroleum, Total, Mitsubishi and ExxonMobil formed to advance an LNG import project in Pakistan has been dissolved.
“The consortium has spent considerable time and resources on finding its final form and structure,” Höegh LNG said on Thursday, adding that by mid-November no agreement with Global Energy Infrastructure could be found which led to the subsequent dissolution of the consortium, that was formed in February.
Prior to forming the consortium, in December 2016, Höegh LNG signed a 20-year FSRU contract with Global Energy Infrastructure, which among other was conditional on GEI putting in place the associated infrastructure required to connect the FSRU to the domestic pipeline grid.
The confirmation of the dissolution follows earlier reports that ExxonMobil had already given up on the project and set its sights on a rival development.
Höegh LNG said that due to the withdrawal of LNG sellers from the consortium, and the delays to the original start-up date for the project, the company is evaluating its options in regard to the FSRU agreement it has signed with GEI.
The company will seek to secure alternative employment for the FSRU that was set to serve the GEI project in Pakistan and is certain it would be involved in another project in the country.
“However, project development is still in its initial stage and no timeline can be indicated at this stage,” the company said.
As it was noted previously by government officials, the dissolution of the consortium brings Global Energy Infrastructure’s LNG import deal with Qatar for the supply of 2.3 mtpa for a 20-year term, under threat.
LNG World News Staff