ISLAMABAD: The new private sector companies seeking entry into liquefied natural gas (LNG) business without government guarantees appeared to be moving in circles as the public sector stakeholders blamed each other for uncertainties relating to enabling environment and infrastructure.
This was the overriding sense of a public hearing conducted by the Oil & Gas Regulatory Authority (Ogra) on the request of Tabeer Energy and Energas for marketing licences for the sale of LNG. Both applicants said they had their own customers in the private sector and would arrange LNG imports without any liability to the government by utilising pipeline network of gas utilities.
Ogra Member Gas Muhammad Arif asked Tabeer if it had the capacity allocation for LNG terminal and gas pipeline network so it could supply gas to its customers and when it could start imports.
Tabeer’s Ansar Khan said his company had secured the licence, land allocation and related regulatory approvals for setting up of LNG terminal of its own in 2022. Initially it could import 200-250 million cubic feet per day of LNG by April 2021 using government-owned Pakistan LNG Limited (PLL) terminal capacity, he added. Khan said it would help the PLL to share a part of its surplus terminal capacity and help provide cheaper LNG to customers of group companies since it would not involve any middleman.
These included Lucky Group, Younas Brothers, Sapphire Group and Halmore and so on who did not get gas supply and had to rely on furnace oil to meet export orders and domestic production.
He said the company participated in PLL’s bidding for terminal capacity a few months back but were not allowed in the absence of a marketing licence. He said the Sui Southern Gas Company Limited (SSGCL) had recently completed a 17-km pipeline from Port Qasim to Pakland Cement and the government had given an assurance that this pipeline would de-bottleneck about 600mmcfd of additional capacity.
PLL’s Yousuf Inam said the involvement of private sector would bring efficiency by utilising unutilised capacity and create competitive market. He said Energas was not allowed to participate in bidding for terminal capacity for an import slot in November as the company lacked marketing licence.
Source: dawn.com
