ExxonMobil Terminates LNG Project Partnership With Pakistan - Android

ExxonMobil has reportedly pulled out from a partnership with Pakistani consortium Energas, NS Energy reported. The partnership was formed to… Read More

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ExxonMobil has reportedly pulled out from a partnership with Pakistani consortium Energas, NS Energy reported.

The partnership was formed to establish a liquefied natural gas import terminal (LNG project) in Pakistan. ExxonMobil had signed an agreement with Energas in 2018 to support what would become the third LNG import terminal in Pakistan.

ExxonMobil’s decision to quit the LNG project is seen as part of its plans to reduce its capital and operating expenses.

A national daily of Pakistan had earlier reported that ExxonMobil was 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. The paper also quoted a company spokesperson as saying, “This is part of our ongoing review to find further efficiencies and strengthen the company for the future”.

However, the spokesperson was also quoted to say that this move by the company will not affect its downstream and chemical activities in Pakistan, while future investment opportunities in the country will be assessed.

ExxonMobil had also signed a cooperation agreement with Universal Gas Distribution related to the compressed natural gas (CNG) sector and supply LNG supply to Pakistan.

ExxonMobil’s move to quit the LNG project in Pakistan comes after the third consecutive quarterly loss in 2020. NS Energy is of the opinion that this may also lead the company to take up even deeper cost cuts as well as a potential $30 billion writedown to its North American natural gas assets.

Massive layoffs are also expected, as the company is set to reduce its global workforce by 15 percent in the next two years, which is approximately 14,000 jobs. In the company’s headquarters in Texas, 1,900 job cuts have already been confirmed and across Europe, the US energy company will lay off up to 1,600 more employees by the end of 2021.

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