Govt to import 200MMCFD LNG for winter season
25 September, 2012
ISLAMABAD: To meet the growing energy demand in the upcoming winter season, the government has decided to immediately import 200 million cubic feet per day (MMCFD) liquefied natural gas (LNG), official sources informed.
ISLAMABAD: To meet the growing energy demand in the upcoming winter season, the government has decided to immediately import 200 million cubic feet per day (MMCFD) liquefied natural gas (LNG), official sources informed.
This fast track import would be initiated on tolling basis, under which the vessels having onboard re-gasification facilities would be used for shipment of LNG and the Sui Southern Gas Company Limited (SSGCL) terminal would be used for receiving refined-LNG from the vessels against a tolling fee.
Sources said that the decision to this effect was taken on the recommendations of the committee constituted by the prime minister for developing LNG infrastructure and suggest recommendations for early realisation of LNG import to cater to the requirements of the country.
The fast track project would be done on tolling basis, which means the vessels having onboard re-gasification facilities would be used for shipment of LNG and the SSGC terminal would be used for refined-LNG receiving from the vessels against a tolling fee.
The proposal is that the funding of the projects would be done by using the Gas Infrastructure Development Cess (GIDC). The officials of Petroleum Ministry have informed the meeting presided over by the Finance Minister Dr Abdul Hafeez Shaikh that section 4(1) of the GIDC Act, 2011 allows utilisation of cess for LNG projects contingent to the approval of competent forum.
The petroleum minister also informed that that subsidiary of Sui Northern Gas Pipelines Ltd and SSGCL as its direct equity. As the meeting was informed that the technical feasibility of the terminal acquired by the subsidiary of the SNGPL and SSGCL has not yet been done, the adviser was of the view that the project should be initiated on competitive basis where other terminals may be given a chance to compete.
The meeting also discussed about long-term LNG project, which the adviser stated could take 18-24 months to complete with one-year ramp up period. The tenure of the long-term LNG project would be 10 to 15 years extendable with mutual consent.
The subsidiary of SNGPL and SSGCL will invite private companies, including existing capacity holders, terminal construction licence holders to bid for supply of refined-LNG or construction of terminal. The subsidiary of SNGPL and SSGCL would also be eligible to construct new LNG terminals.
The meeting also noted that LNG procurement from international market could be through negotiations, which are not allowed under Public Procurement Regulatory Authority Rules and to keep things simple and transparent, it was agreed to process the long-term LNG projects on integrated basis.
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