Sui Southern Gas Company (SSGC) Limited Board of Directors is likely to approve LNG Supply Agreement (LSA) in next few weeks for which it is negotiating a contract with Engro Vopak Terminal Limited (EVTL), officials said. According to sources in the Ministry of Petroleum and Natural Resources, SSGC board is negotiating a $2 billion service tolling contract with EVTL for the import of Liquefied Natural Gas (LNG) for 15 years.
A senior SSGC official who is part of the negotiation team between SSGC and Engro talking to Business Recordersaid that the board of directors is likely to allow the SSGC to ink the LSA with EVTL. Engro Vopak Terminal Limited (EVTL) to be modified which will be ready by June, 2014. The LSA is being negotiated and will be settled in six weeks, then the board of directors of SSGC would examine it and upon satisfaction the summary for the formal approval will be sent to the Economic Co-ordination Committee of the Cabinet.
The board of directors of the Inter State Gas System (ISGS) on November 21 recommended to SSGC to accord a formal approval to award $2 billion services contract to EVTL. The government is to start negotiations on the LNG supply agreement with Qatar. Federal Minister for Petroleum and Natural Resources Shahid Khan Abbasi has said Pakistan wants to import up to two Billion Cubic Feet (BCF) of LNG, and on fast track basis 200-400 million Cubic Feet per Day (mmcfd) will be imported between November and December 2014. According to the minister, the government wants to start first import flow of LNG by November 1, 2014.
Sources said $1.4 billion 1,250 kilometres long pipeline from Karachi to Lahore will be laid down to transport the two billion cubic feet per day LNG after it is transformed into gas to Punjab and upper parts of the country. Punjab is facing acute gas shortage and as per initial plans of the government it was decided that from December 1, 2013 there will be no gas available to industrial, commercial and CNG sector till February, but due to better weather conditions the management has not completely suspended the gas supply to any of the sectors. The government will only cater to the gas needs of domestic consumers in January and February.
Author: Abdul Rasheed Azad
Source: Business Recorder