The News reported that as the Mashall LNG project failed to deliver, the government now plans to import 500 million cubic feet LNG directly from Qatar which has invited criticism from the industry for it being against the norms of transparency.
Industry sources said that this was against the norms of transparency, since in order to ensure that the country got LNG at a competitive rate all countries should be allowed to participate in a bidding process. The fuel would directly be imported from Qatar on the basis of issuing a sovereign guarantee. The terms of this deal with Qatar have yet to be disclosed.
The Oil and gas Regulatory Authority has recently allocated capacity allocations to three companies for LNG import into the country. These include Pakistan Gas Port Limited, Engro and Global Holdings Limited.
The sources said that all the 3 projects are being developed by the private sector on fast track basis and are expected to contribute approximately 1.5 billion cubic feet per day by 2013. The Ministry of Petroleum and Natural Resources is actively supporting these projects since LNG is the need of the hour. After the failure of the private companies to import LNG, the government has sprung into action in view of the worsening energy crisis.
OGRA had earlier finalized three companies, including Global Energy International, Gas Port and Engro for LNG import, the sources said, adding that the Global Energy had given the undertaking to the authority that it would import LNG by the Q2 of the current year and Engro and Progas by Q2 of 2013. However, the GE had started seeking more relaxations, which are against the rules of business earlier set by the regulatory authority.
The sources said that the GE had asked for the sovereign guarantees, waiver of the third party access rules and more time till November. OGRA extended the time on the directives of the ministry but the company seems not inclined to import LNG which is why the minister air dashed to Qatar where he gave an undertaking that the Pakistan government would provide sovereign guarantees to Qatar against the import of 500 million cubic feet per day LNG.
They said that the LNG import will not negate the 2011 LNG Policy under which the government is bound not to provide any sovereign guarantee to the private company importing LNG into Pakistan. Around 800 million cubic feet per day gas will be injected in the system by June this year.
(Sourced from www.thenews.com.pk)
