Clarification

This clarification refers to a news item “Qatar asks Pakistan to address obstacles to Energas LNG terminal” published in The News International on Thursday, May 25, 2023. Regarding the news, Sui Northern Gas Pipelines Limited (SNGPL) has clarified that the Federal Cabinet (ECC) in its meeting held on October 27, 2021 allocated pipeline capacity to Energas on SNGPL network.

SNGPL’s board of directors (BOD) during December, 2021 accorded approval, in principal, for execution of Access Agreement with Energas. SNGPL says it’s incorrect that matter is pending with the BOD.

SNGPL, upon its BOD approval, had shared final draft of Access Agreement with Energas in January, 2022 and again in August, 2022 for their signatures. However, Energas did not sign/initial the same and insisted on signing Allocation Agreement only.

Petroleum Division in a meeting held on November 24, 2022 had finalised all key pending issues in Allocation Agreement after reviewing SNGPL and Energas view point which is on record.

SNGPL had shared finalised Allocation Agreement with Energas for initialing on January 10, 2023 in line with Cabinet latest decisions in field and the Petroleum Division direction. However, Energas has refused to do the same to date.

Energas instead of signing the finalised Allocation Agreement is trying to open up already settled points in the Allocation Agreement, contrary to Third-Party Access (TPA) Rules, 2018, Pakistan Gas Network Code (PGNC), Cabinet decision in field and Petroleum Division directions.

SNGPL clarified that TPA Rules and PGNC are final notified legal documents in field, since quite some time. SNGPL says it’s continuously following up for earliest finalisation of Pipeline Allocation Agreement in line with the decision of the federal government. The reporter Khalid Mustafa stands by his story.