News Report
KARACHI: Pakistan GasPort Limited (PGPL), the owner and operator of an LNG import terminal in Pakistan, has applied for a licence from the Oil and Gas Regulatory Authority (Ogra) to sell excess gas to the private sector ahead of the anticipated fuel crisis in the winter.
PGPL is one of the only two LNG import terminals operating in the country at present. It has an installed capacity to import and sell up to 750 million standard cubic feet per day (mmscfd). It is, however, selling only 600 mmscfd to the government, while the remaining 150 mmscfd capacity has been idle since it began commercial operations in December 2017.
“The Economic Coordination Committee (ECC) and the government have approved the utilisation of excess capacity by the private sector. In view of the ongoing energy crisis in the country, it is in the national interest to utilise the available capacity at our terminal as soon as possible,” PGPL said in its application for the licence to Ogra.
The company has applied for a grant for the licence of the sale of natural gas/RLNG for a 20-year period (2022 -2042) under the Ogra Natural Gas (Licensing) Rules, 2002. PGPL owns 100% of the PGP Consortium Limited (PGPCL) which owns and operates an LNG import terminal at Port Qasim, Karachi. Under the operation and services agreement (OSA), PGPCL is obligated to re-gasify and deliver 600 mmscfd of RLNG to Pakistan LNG Limited (PLL). “Considering the FSRU (Floating Storage and Regasification Capacity) regasification capacity of 750 mmscfd, free capacity of up to 150 mmscfd is available with PGPCL that will be utilised through PGPL or through another company or through a group of companies,” according to the application documents. Pak-Kuwait Investment Company (PKIC) Head of Research, Samiullah Tariq said that the “recent amendments in concerned regulations have allowed LNG import terminal operators to utilise the excess gas supply capacities to sell gas to the private sector”.
