The government has sought the National Accountability Bureau’s green light to utilise the 330 mmcfd spare capacity available at both the LNG terminals’ FSRUs (Floating Storage Regasification Units) to avoid gas load-shedding in the winter season.
Well-informed sources told The News that the Petroleum Division had written a letter to the NAB in this regard.
The NAB is currently investigating Engro LNG terminal company for increasing regasification of LNG from 400 to 600mmcfd and award of contract for setting up the terminal.
Likewise, another LNG terminal of PGPCL (Pakistan Gas Port Company Limited) is already in London Court of International Arbitration against the one sided termination of OSA by PLL (Pakistan LNG Limited).
According to the top sources, another meeting was held at the Petroleum Division on Friday for utilizing the additional capacity of 330 mmcfd available at both LNG terminals.
Representatives of Engro, PGPCL, PLL, Sui Southern Gas Company and top officials of the Petroleum Division attended the meeting. Earlier meeting on the subject was held on August 9.
They said utilization of 180 mmcfd available at Engro LNG terminal was possible only when NAB gave a go-ahead and SSGC showed readiness to retain the new FSRU presently functioning at Engro LNG terminal.
Sui Southern wants no additional financial liability in current LSA (LNG services agreement) if new FSRU with capacity to re-gasify 780 mmcfd is retained and in case it wants to procure the new FSRU, the price will be on a par with the old FSRU which has gone to Qatar for dry docking purposes.
SSGC also does not want any damage to the sanctity of the existing contract with Engro LNG terminal.
During the meeting, the sources said, Engro representatives were found upset as they wanted the SSGC and Petroleum Division to retain their new FSRU till August 30, but the government side and its company SSGC refused to come up with its decision by August 30 saying unless NAB gives go ahead and the top decision making forum extended the required approval, it was not possible to respond before August 30.
The dry docking of the FSRU Exquisite of Engro LNG Terminal that left Pakistan waters on June 28-29 will end by August 30. The decision to retain the existing new FSRU Sequoia by the government is must. And in case the government fails to retain the existing FSRU at the LNG terminal, then its old FSRU— Exquisite will replace the new one.
The new FSRU has the capacity to degasify RLNG up to 780mmfd, while the old one has 660mmcfd.
The government wants to acquire the additional capacity of 150-180mmcfd of the FSRU Sequoia with take or pay model in case it is retained. The decision to reduce the regasification fee of additional capacity will be taken in later meetings.
