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SIFC directs Petroleum Division to remove hurdles in Qatar’s LNG terminal investment

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9 months ago

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  • Petroleum Division has been asked to resolve all issues so that investment from Qatar could be ensured, says official.
  • PD asked to resolve all issues to make way for Qatari investment.
  • Investment has been pending for last five years due to red-tapism.
  • Petroleum Division secretary personally trying to resolve all issues.

ISLAMABAD: The Special Investment Facilitation Council (SIFC) has directed the Petroleum Division to remove hurdles in the $200 million Qatari investment in an LNG terminal, reported The News on Friday citing sources.

“Energas plans to establish the LNG terminal with Regas capacity of 750-1,000 MMCFD having a shareholding of 49% of Qatar Gas and 51% of Energas. To be erected on BtB model, the investment from Qatar has been stalled for the last five years due to bureaucratic red-tapism,” an official, who spoke on the condition of anonymity told the publication.

Qatar raised the issue during the Pakistan Tehreek-e-Insaf (PTI) and Pakistan Democratic Movement multiple times but no progress could be made on OGRA network code, tax holiday, TPA exemption, SNGPL GTA (gas transmission agreement).

“This time SIFC has taken up this issue with the intervention of top military leadership and directed the mandarins of the Petroleum Division to resolve all the issues and report back so that the investment from Qatar could be ensured.”

A senior official told the publication that following the SIFC’s intervention the Petroleum Division secretary is personally looking into the issue and trying to resolve all issues.

The Energas Terminal, which is to be operated without any government guarantee on RLNG takeoff, will have the capacity to re-gasify up to 1,000 million cubic feet per day (mmcfd) of LNG.

However, Qatar is not the only one interested in LNG projects. Pakistan Port Gas Limited’s LNG Terminal-2 and Tabeer LNG Terminal owned by Japan’s Mitsubishi have been in the pipeline for a long time.

The projects were supposed to become operational in 2021 on a BtB model but are yet to take off because of red tape.

“The ministry is working on the issue as the government wants more LNG terminals on BtB model,” said Energy Minister Muhammad Ali told The News.

According to Energy Ministry officials, the Petroleum Division has wasted five years to install LNG terminals. At the same time, it could not lay another RLNG pipeline from Karachi to Lahore (North-South or Pakistan Gas Stream Pipeline).

Both the PTI and PDM governments failed to develop infrastructure to support the import of RLNG. Under the existing scenario, the government has signed contracts with the existing two LNG terminals — Pakistan Gas Port Limited Terminal (PGPL) and Engro Elengy Terminal (Private) Limited (EETL) with sovereign guarantees against the import of 1.2 bcfd at the maximum.

However, if Pakistan’s wishes to import more RLNG then it would need more terminals and a pipeline.

The Sui Southern Gas Company (SSGC) board has allocated pipeline capacity to the Energas Terminal and signed GTA, the official said. However, the approval for pipeline capacity from the Sui Northern Gas Pipelines Limited (SNGPL) board is still pending and consequently, the GTA could not be signed.

Furthermore, the official said incomplete documentation of the Third Party Access (TPA) associated with the Oil and Gas Regulatory Authority is also causing delays. The interim pipeline capacity has become necessary due to the incomplete OGRA-TPA documents.

“The network code, which is crucial for operationalising the network, also remains incomplete, with no progress towards its finalisation.”

When contacted, the SNGPL said the ECC in its Oct 27, 2021 meeting allocated pipeline capacity to Energas on the SNGPL network.

The gas supplier added that its Board of Directors in December 2021 accorded in-principle approval for the execution of Access Agreement with Energas and it was incorrect to lay the blame on them.

The SNGPL, after BOD’s approval, shared the final draft of the Access Agreement with Energas in January, 2022 and again in August, 2022 for their signatures. The Energas, however, did not sign the document and insisted on signing the Allocation Agreement only.

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An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

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18 hours ago

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The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

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Weekly inflation in Pakistan increased by 0.17 percent.

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18 hours ago

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The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

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Business

The price of gold has drastically dropped in Pakistan.

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2 days ago

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As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.

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