Vested interests: Port Qasim board likely to see fresh faces

Private sector lobby accused of delaying LNG import project.

ISLAMABAD:

As Port Qasim Authority’s board is allegedly hampering Liquefied Natural Gas import at a time when the country is facing energy crisis, the board is expected to be reconstituted with inclusion of some government faces as all current members belong to the private sector.

The government’s point is not being conveyed in the board meetings, sources told The Express Tribune.

Petroleum Minister Dr Asim Hussain while talking to The Express Tribune confirmed talks that PQA is being represented by private members who are creating bottlenecks in Liquefied Natural Gas (LNG) import projects.

He added that the country could not bear any delay in the project due to the severe energy shortage. Power shortage crossed the 7,000MW mark on Saturday against the country’s demand of 18,000MW.

Private members of PQA board were causing delay in granting licences to the party interested in setting up LNG terminals for imports to meet the domestic requirements, Hussain said. He also confirmed that there was no government nominee on PQA’s board.

I am going to write a letter to Prime Minister Yousaf Raza Gilani that proper action should be taken against lethargy of private members on the board, Hussain added.

The government plans to facilitate LNG importers that will provide supply to Punjab in a bid to end outage by next winter. The government also plans to lay a pipeline from Karachi to Lahore for transportation of imported LNG.

At present, Oil and Gas Regulatory Authority has issued conditional construction licences of LNG import projects to three parties Pakistan Gas Port, Global Energy Holding and Engro Corporation.

Sui Southern Gas Company is working on LNG project and received bids from 17 international and domestic firms, however, the government wants the private sector to initiate LNG import through third party access. This will be done by providing transmission system of gas utility companies to import LNG, set up re-gasification plants and send it to gas transmission system at their own risk.

The prospective investors will negotiate LNG price and supply contracts with potential buyers like power producers by utilising the transmission system of the gas utility companies.

Published in The Express Tribune, October 2^nd, 2011.