Senate panel seeks probe into second LNG terminal

Members ask why the terminal was built when it is being underutilised

ISLAMABAD: The Senate Standing Committee on Petroleum has called for undertaking a probe into the second liquefied natural gas (LNG) terminal set up by Pakistan GasPort Consortium at Port Qasim.

The committee questioned as to why the terminal was underutilised and why the Power Division did not give adequate demand to the terminal.

It expressed serious concern, asking as to why such a huge terminal was built and wrong assumptions were made about demand. The meeting, chaired by Senator Mohsin Aziz, was held at the Parliament House on Monday.



Committee members noted that the terminal was working at 54% capacity and consequently the government paid $45 million in idle capacity charges in the past nine months. The committee was of the view that the terms of contract should be well thought out and should not put the government at a disadvantage.



The committee also took up details of loans taken by Pakistan State Oil (PSO) and details of pending inquiries by external agencies against PSO officials.

The members were told that PSO had, as of October 1, receivables of Rs240 billion and if the power sector made payments on time then the company would not need to take loans to continue its operations. The committee recommended timely payments to PSO by the power sector. PSO was also asked to hold an inquiry into substandard lubricants being sold in its name. Accelerating the inquiries and bringing them to a logical end was also recommended.



Regarding oil tankers, the committee was of the view that oil containers should be given clearance only if they were compliant with rules of the National Highway Authority (NHA).

Published in The Express Tribune, October 2^nd, 2018.

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