LNG terminal: OGRA issues three construction licences

PM directs authorities to expedite import process.

ISLAMABAD: Oil and Gas Regulatory Authority (Ogra) has issued three construction licences to set up Liquefied Natural Gas (LNG) terminals at the cost of $500 million.

The construction licences have been issued to Pakistan Gas Port (PGP), Turkish firm Global Energy Holding (GEH) and Engro Corporation. Ogra had issued conditional construction licences to these companies earlier.

Minister for Petroleum and Natural Resources Dr Asim Hussain confirmed to The Express Tribune that Ogra had issued construction licences to these firms to import LNG into the country on fast track basis in a bid to overcome the energy crisis.

“Prime Minister Yousaf Raza Gilani has directed Ogra and Port Qasim Authority (PQA) to expedite the process of LNG imports,” Hussain said.

Briefing a meeting chaired by Gilani on Tuesday, Acting Chairman of Ogra Sabir Hussain said that the government was actively engaged to pave the way to import LNG equal to 500 million cubic feet per day (mmcfd) on an emergency basis which will be exclusively used for the generation of 2,500MW electricity in the country.

The import of LNG and its utilisation infrastructure is expected to be completed by the third quarter of 2012. In addition, a separate pipeline meant for the creation of increased capacity for transportation of gas from PQA to Punjab province is also in hand and work is progressing satisfactorily.

PQA Chairman apprised that the Authority will have to build three terminals with an estimated cost of $500 million to cope with the handling of the import of such a huge quantity of LNG. He said that PQA was fully prepared to undertake the project after meeting the normal mandatory legal requirements and the imperatives of cost effectiveness of the project.

He said that PQA was already working with interested investors for the development of jetty and terminal facilities for handling LNG and implementation of agreement in this regard will be finalised shortly.

The PM directed the PQA Chairman to gear up his organisation to cope with the energy shortage issues and take all necessary measures to ensure early import of LNG.

Published in The Express Tribune, October 5^th, 2011.