ABDUL RASHEED AZAD
ISLAMABAD: The Sixth shipment of Liquefied Natural Gas (LNG), which was due to reach port Qasim Authority (PQA) on July 1, is now is likely to dock on Wednesday, consequently gas supply to the CNG stations of Punjab will be restored on July 8.
According to sources, the shipment was delayed due to hold up in payments by Independent Power Producers (IPPs) and other consumers. They said that IPPs have to pay Rs 14 billion to Sui Northern Gas Pipelines Limited (SNGPL).
CNG stations across Punjab have been closed since June 25 and were expected to reopen on July 1, but late arrival of LNG shipment caused further delay.
Sources told Business Recorder here on Monday that the final agreement with Qatar is likely to be singed within next two weeks, as Pakistan has completed infrastructure in this regard.
Sources said that Pakistan and Qatar are likely to sign long term LNG Sales Purchase Agreement (SPA) by July 15.
Qatar has objected to the channel depth of the Port Qasim Authority, which was 13 meter against the required depth of 14 meters. Now the PQA has completed the required dept of the channel.
Qatar has assured Pakistan of supplying sustainable LNG for 15 years and Pakistan wanted to purchase the commodity on long term as well as medium term and spot purchase basis. Based on the current international crude oil price of $65 per barrel, the LNG will cost Pakistan $ 8.10 per MMBTU.
First cargo of LNG arrived at Port Qasim on March 26, 2015 which was transported by the Floating Storage And Re-gasification Unit (FSRU) instead of a normal LNG carrier, now sixth cargo is to arrive in Karachi on Tuesday.
The FSRU, which has been hired by LNG terminal operator, Engro Elengy Terminal Limited (EPTL), is transporting 3,000 million cubic feet LNG.
“We are utilizing FSRU because Qatar was not ready to send gas to Pakistan on the plea that channel depth was not according to requirement. As per agreement with Engro Pakistan will have to pay $272,000 per day to the EPTL if it fails in bringing the commodity, so to avert the penalty we used FSRU and saved $25 millions,” an official of the Inter State Gas System said.
Central leader of All Pakistan CNG Association (APCNGA) Ghiyas Abdullah Paracha said hundreds of CNG stations will reopen from July 08.
Efforts are underway to keep Punjab CNG stations operational on continuous basis, which will help CNG operators and masses seeking cheap fuel.
Petroleum Minister Shahid Khaqan Abbasi and Ghiyas Paracha in a meeting decided to revive CNG stations of Punjab, which are not using RLNG and while some point of a formula for revival of CNG sector were also agreed upon.
0On the occasion Abbasi said that CNG is an important sector and government wanted investment in the sector to be fruitful.
Paracha said that the consumption of petrol has gone down in Punjab after RLNG usage as motor fuel.
