Govt plans to shift LNG terminals to suitable locations

Tasks Ministry of Maritime Affairs to conduct cost-benefit analysis

ISLAMABAD: The Ministry of Maritime Affairs has stated that the existing liquefied natural gas (LNG) terminals have been set up without conducting any study on safety hazards, hence the government is planning to shift these terminals to other suitable places.

The government has tasked the Ministry of Maritime Affairs to carry out a cost-benefit analysis and a study for shifting the existing LNG terminals to some other places.

The government has further directed the ministry to carry out the study in consultation with the Petroleum Division to assess the requirement of setting up new LNG terminals in the country.

The ministry has been assigned the task of safety of ports and regulation of matters relating to dangerous cargo.

In a recent meeting of the Economic Coordination Committee (ECC), officials of the ministry revealed that the Port Qasim Authority (PQA) board, in its meeting on May 7, 2011 and August 10, 2011, had identified Jhari Creek as the most appropriate zone for LNG terminals.

However, no independent technical studies could be undertaken so far. An independent study was recommended to ensure compliance with industrial safety standards and zero impact on normal port traffic. The committee was told that the terminals were constructed on the main PQA channel against the recommendation of the authority, which resulted in congestion on all berths. Owing to this, a significant amount of foreign exchange is being paid in demurrages.

The Ministry of Maritime Affairs informed the meeting that the PQA board, in its meeting held on September 13, 2018, had approved provisional allotment of two additional sites for LNG terminals. However, the PQA board was requested to reconsider it.

The ministry had submitted a recommendation that the LNG Policy 2011 should be amended to reflect the NOC from the Sindh Environmental Protection Agency (Sepa), QRA study and the navigational simulation study performed on a suitable location allotted by the Ministry of Maritime Affairs and port authorities within the specified LNG zone covering security, safety, environmental and traffic aspects.

The ministry also recommended that the established LNG import terminals for securing alternative gas supplies may be excluded from the purview of Pakistan LNG Terminals Limited (PLTL) under the Petroleum Division. The Ministry of Maritime Affairs will perform this function in consultation with the port authorities.

It also recommended allowing the Ministry of Maritime affairs and the PQA to identify a specific zone for LNG terminals through an independent study by a third party.

Published in The Express Tribune, November 16^th, 2018.

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