Plan to import 500mmcfd LNG from Qatar

ISLAMABAD: The government is contemplating import of 500 million cubic feet of Liquefied Natural Gas (LNG) from Qatar within six months by retrofitting the existing storages of Engro Corporation and Sui Southern Gas Company (SSGC) but existing laws may become a hindrance.A meeting, presided over by petroleum minister Shahid Khaqan Abbasi and attended by top management of the Oil and Gas Regulatory Authority (Ogra), the Planning Commission, gas companies and bulk cargo handlers of liquefied gas, discussed at length an offer from the Qatari government to provide 500mmcfd of LNG at port.

A senior official told Dawn that the Qatar government had offered to make arrangements for providing 500mmcfd of LNG through its own ships provided Pakistan had facilities to offload these quantities at Karachi port.Qatar will provide LNG and the ship, but could not make terminal arrangements for regasification, unloading and onward transportation,said the official.
He said the Ministry of Petroleum was taking a summary to the Economic Coordination Committee (ECC) of the Cabinet in its forthcoming meeting with two options 150 one for short- term and one for long-term LNG supply arrangement to be implemented in three to five years.
He said given the fact that no other options, except the LNG, was possible in the short term, the ECC was being requested to allow retrofitting of LPG storages of Engro and SSGC through which gas imports could begin in six to seven months to resolve the energy crisis by mid-winter.
Secondly, the ministry would recommend setting up of 500-1000mmcfd capable new terminal for which bidding should be held or any selective party from a friendly country be involved through government to government deal.
He said the ECC would be requested to approve one-time exemption from application of Public Procurement Rules to run through various stages of bidding so as to shorten the overall bidding schedule.However, these recommendations have not gone well with the Ogra.
The sources said the Ogra informed the Petroleum Ministry that Ogra rules required a licence for LNG terminal operator before it is allowed to set up LNG handling facilities while in the instant case, neither the SSGC, nor Engros storage facility had such a licenced provision for LNG import.
In fact, the Ogra also pointed out that even though Engro was among the three applicants who had been given licences for LNG import at a separate point which could not be used for retrofitting of SSGC-Engro storage facilities.
The terminal licences are issued with specific place, technology, quantity and quality that could not be used as an umbrella permission to start importing any product somewhere else, the Ogra is reported to have put on record.
The ECC in its recent meeting had cancelled the two bidding rounds of 400mmcfd of LNG import and authorised the Petroleum Ministry to engage with the Qatar government for a government to government deal.
A ministerial team that recently visited Qatar had been offered to provide LNG and a ship for its transportation up to Karachi port by the Qatari side.
LNG imports are facing various hitches for more than 10 years now as gas shortages increased beyond 2000mmcfd during peak winter season.
Various governments have been making failed attempts to import at least 500mmcfd to generation about 4000mw of electricity