Commerce Reporter
ISLAMABAD: Pakistan GasPort Consortium (PGPC), which operates a liquefied natural gas (LNG) terminal, has turned down the strict conditions laid down for utilising excess capacity of its terminal.
PGPC’s terminal has handling capacity of 750 million cubic feet per day (mmcfd) of LNG. State-owned Pakistan LNG Limited has been allocated 600 mmcfd of capacity at the terminal, which has operated at full capacity for only a few days.
The terminal operator is seeking to utilise its 150mmcfd idle capacity at its own risk. PGPC and PLL also signed an agreement on August 3, 2022 that gave unconditional rights to the former to utilise surplus capacity of the terminal. However, the government has made it difficult for the terminal operator and is not permitting it to utilise its own capacity. In a letter to the Petroleum Division, PGPC has turned down the laid-down terms and conditions, saying it had not been able to facilitate private investors in receiving a single LNG ship over the last four years despite idle capacity at the terminal.
On the other hand, PLL has failed to arrange LNG over the last one year, particularly ahead of the winter season.
PGPC is handling only two ships a month against the government’s allocation of six ships due to PLL’s failure to arrange LNG cargoes.
In the letter, PGPC said “in a country which desperately needs gas and which has been offered a viable solution by private sector to bring gas and sell it at its own risk and responsibility, to say the least, your (Petroleum Division) letter is disappointing”.
The company was referring to a letter written by the Petroleum Division on September 11, 2022, which imposed some conditions that seemed to be giving PLL the primary rights of utilising the full terminal capacity.
