Engro LNG terminals paid Rs35b as capacity charges, Senate body told

ISLAMABAD: Senate standing committee was informed on Thursday that consumers have been burdened with Rs35 billion for paying capacity charges to the Engro LNG terminals over the past three years.

Officials of the petroleum division told the Senate Standing Committee on Petroleum that met here with Senator Mohsin Aziz in the chair that in last three years, Rs35 billion has been paid to the LNG terminal in the form of capacity charges. Managing Director of the Sui Southern Gas Company (SSGC) Amin Rajput informed the committee that Interstate Gas Company (ISGC) conducted the bidding process for setting up of LNG terminal in which Engro was selected for this project. He also informed that SSGC was not part of this process. After selection of the company, SSGC, Pakistan State Oil (PSO) and Engro signed the contract after the approval by the federal government.