Rs27m per day to be paid whether LNG is utilised or not

ISLAMABAD: While the Engro terminal at Port Qasim has started regasifying the LNG and will be charging Rs27 million per day whether it is being utilised or not, the federal government has yet not finalised gas pricing issues and the signing of an agreement with Qatar despite all claims.
Sources say the LNG agreement may be delayed for some more time, as still there is confusion about the pricing which needs to be finalized.On the other hand, the CNG association hopes that if all went well regarding the deal and some of their pending issues with the SNGCL are finalized, the CNG will be available for the Punjab CNG stations before the end of the current month.
The PSO officials will move to Qatar in mid-April to finalise matters relating to gas price and to sign an agreement if all issues are settled.Managing Director Inter-State Gas Systems Mubeen Saulat confirmed to The News that the PSO officials will leave for Qatar on April 14 or afterwards to finalise LNG pricing issues and to sign the final agreement.
The first shipment of LNG has already arrived without even signing of the agreement and which has made Engro terminal operational. But the day regasification process of LNG that came though this first shipment, is completed the terminal will remain idle but the SSGCL will have to pay $270,000 per day (Rs27 million per day or Rs810 million per month) which will obviously be borne by the consumers at the end of the day.
However, Mobeen Saulat, who is coordinating all the activities relating to the finalization of international gas agreements including this one between the PSO and Qatargas, while talking to The News said there will be ups and downs in the arrival of LNG shipments and Engro plant can remain non-functional even when the agreement is signed.
He explained that the SSGCL will have to pay per day charges to Engro terminal even when the plant will be non-operational but this difference will be covered when there is a great load of LNG more than average. He said the terminal will have the capacity to regasify that much increased volumes of LNG.
Mobeen said all issues relating to the LNG import from Qatar including pricing are almost finalized and only some final touches were to be given which will be done next week. Federal Minister for Petroleum Shahid Khaqan Abbasi, who has stated on March 25 that LNG contract with Qatar will be signed “next week”, while responding to The News queries on this count on Tuesday stated, “The LNG contract is being negotiated. It is a complex contract and takes time. The Regasification plant is working and the tolling fee will be paid as per the terminal contract. The LNG is being procured by the private sector. There will be no loss to the government.”
Ghiyas Paracha who heads CNG owners association told The News that their agreement with international supplier was final and an alternative option was also matured. “Issues are finalized with Engro terminal and approval has also been taken from the government,” Paracha said.
He said in case the LNG shipment got delayed, they had arrangements to swap consignment with those who will receive an early delivery. He said their issues with the SNGPL will be finalised in the current week and the CNG sector was really enthusiastic about the news that their stations will be operational soon after a gap of more than six months. He demanded that the CNG stations should now be allowed to operate.