PGPC allowed to use excess capacity
RECORDER REPORT
ISLAMABAD: The federal government has allowed a private company, PGPC to utilise its excess capacity of 150mmsfcd, between now and end-March (when the FSRU’s Operational Capacity Testing will take place) for RLNG sale to K-Electric, and the CNG network.
Special Assistant to the Prime Minister, Nadeem Babar chaired a meeting at the Ministry of Energy (Petroleum Division) Wednesday for utilisation of the PGPC’s excess capacity of 150mmscfd for 90 days with representation from the Pakistan LNG Terminals Limited (PLTL), the Pakistan LNG Limited (PLL), the Sui Southern Gas Company (SSGC), and other officials.
The document available with Business Recorder reveals that it was decided that the facilitation will include support with the Ogra and stakeholders to complete all legal formalities in time.
The PGPC and the PLTL are to finalise the borrowing/lending agreement (BLA) by next week.
This arrangement up to March 2021 shall be without prejudice to the arbitration/litigation between the PGPC and the PLTL, and their respective legal claims and obligations. Lawyers for both sides shall agree on a framework that does not compromise each side’s position. The negotiation committee headed by the deputy chairman of the Planning Commission will be asked to finalise its recommendations for the LNG terminals to provide an upside to relevant state-owned enterprises within 8-10 days.
The PGPC has undertaken to accept the decision of the committee retrospectively, so that private imports are not held up.
The SSGC has been directed to complete its 17 kms pipeline by December 15.
Further, the SSGC will confirm whether it can deliver 100-200mmscfd to the KE through its system. Otherwise, the PGPC may deliver RLNG directly to the KE by constructing a 500m spur pipeline. The PGPC and the PLTL will meet to finalise slots for private cargoes.
The PGPC’s total re-gasification volumes for the period after March 2021 will be discussed and decided with the ministry upon the successful conclusion of the FSRU’s Operational Capacity Testing.
The ministry will convene a follow-up meeting on or after Monday, October 19, and is to confirm the above in writing and authorise PGPC to proceed.
The SAPM appreciated the PGPC’s efforts to mitigate the gas crisis. The meeting represents a breakthrough for private sector gas imports, and shall serve as a precedent for further terminals such as the PGPC’s second terminal.
