OGRA to audit LNG projects for technical compliance

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has planned to carry out full review and audit of the LNG projects to confirm that the projects satisfy criteria for design, construction and operation of the LNG terminal as specified in the prevalent LNG Policy, an official said.

The official added that the authority would also review various agreements such as Gas Sales and Purchase Agreement (GSPA) in case of integrated project structure; agreement with LNG terminal owner, operator in case of unbundled project structure etc.

In order to identify shortcomings in the supply chain of existing and upcoming projects, OGRA, through a third party consultancy, would review technology to be used so that it is suitable, tested, and proven internationally for design, construction, and operation of LNG facilities.

It may be mentioned here that Pakistan LNG Terminals Limited (PLTL) also conducted retainage audit of the LNG terminals at Port Qasim.

PLTL terminated the operation and service agreement (OSA) of the LNG re-gasification terminal with Pakistan Gas Port Consortium Limited (PGPCL) for ‘failing to maintain the OSA requirements’.

Pakistan's LNG import is expected to double by 2023. Authorities are trying to chart a way out of a recurring economic boom-and-bust cycle. Many factories used to remain shut for months at a time as there was little gas to spare in winters when domestic heating consumption peaked, a crisis that started to ease after LNG imports four years ago.

As many as five private sector companies are in line to set up Liquefied Natural Gas (LNG) terminals, having the capacity to re-gasify 500-700 Million Cubic Feet per day (MMCFD) gas each. These include Tabeer Energy, a unit of Mitsubishi, Energas with partner Exxon; Pakistan GasPort and commodities trader Trafigura; Engro with partner Shell, and Gunvor with Pakistani conglomerate Fatima.