Network access rules: Gas Port accuses OGRA of favouring one importer
Regulator denies charge and invites comments from stakeholders.
ISLAMABAD:
Pakistan Gas Port has lashed out at the Oil and Gas Regulatory Authority (Ogra), saying it is finalising the draft of network access rules for liquefied natural gas (LNG) importers in haste and a non-transparent manner by favouring a single party.
“This is the third draft of the third party access rules that has been circulated by the authority. Regrettably, a few hours’ notice given to us to weigh up the latest draft indicates both haste and non-transparency on the part of the authority, lending credence to press reports that the ministry and authority are formulating the rules arbitrarily and in collusion with a ministry-favoured, private sector LNG project developer,” Gas Port said in a letter sent to Ogra.
Gas Port along with two other companies has been short-listed for a project involving LNG import and building of a terminal and other infrastructure. LNG imports are expected to begin in the second half of 2012.
In the communication, Gas Port referred to a letter of Ogra, received in the evening of October 14, asking to submit response before noon on October 15, which was Saturday on which the authority does not work. Port Gas has sought extension of the deadline to submit comments on the draft of LNG third party access rules until October 24.
Gas Port recently signed a term sheet with the Overseas Private Investment Corporation (OPIC), an independent US government agency, for a debt financing facility of $98.6 million for a $166 million LNG project, the most advanced project for Pakistan.
Gas Port took strong exception to the authority’s “probably discriminatory, arbitrary and non-transparent decision-making that threatens and undermines both investor confidence and faith of international lenders in important energy projects.”
It asked the authority to exercise prudence as no meaningful response could be provided to the authority in such a short notice given the changes introduced in the latest 25-page draft of third party access rules.
Gas Port asked Ogra to allow all parties at least seven business days to review the document and provide comments for review and action. It also called for rescheduling of the October 17 meeting between stakeholders.
Ogra claims transparency
A senior official of Ogra told The Express Tribune that the authority was formulating third party access rules in a transparent manner and pointed out that it had sought comments from all stakeholders to ensure transparency in the whole process.
“The authority has invited comments from seven parties interested in LNG import and a meeting has been set for Monday for a final review of the draft, which will not be extended,” he said.
Ogra had hired an independent consultant Mehmood Elahi to come up with access rules for LNG importers keeping in view international practices and the move was aimed at overcoming energy shortages, he said.
Published in The Express Tribune, October 16th, 2011.
Pakistan Gas Port has lashed out at the Oil and Gas Regulatory Authority (Ogra), saying it is finalising the draft of network access rules for liquefied natural gas (LNG) importers in haste and a non-transparent manner by favouring a single party.
“This is the third draft of the third party access rules that has been circulated by the authority. Regrettably, a few hours’ notice given to us to weigh up the latest draft indicates both haste and non-transparency on the part of the authority, lending credence to press reports that the ministry and authority are formulating the rules arbitrarily and in collusion with a ministry-favoured, private sector LNG project developer,” Gas Port said in a letter sent to Ogra.
Gas Port along with two other companies has been short-listed for a project involving LNG import and building of a terminal and other infrastructure. LNG imports are expected to begin in the second half of 2012.
In the communication, Gas Port referred to a letter of Ogra, received in the evening of October 14, asking to submit response before noon on October 15, which was Saturday on which the authority does not work. Port Gas has sought extension of the deadline to submit comments on the draft of LNG third party access rules until October 24.
Gas Port recently signed a term sheet with the Overseas Private Investment Corporation (OPIC), an independent US government agency, for a debt financing facility of $98.6 million for a $166 million LNG project, the most advanced project for Pakistan.
Gas Port took strong exception to the authority’s “probably discriminatory, arbitrary and non-transparent decision-making that threatens and undermines both investor confidence and faith of international lenders in important energy projects.”
It asked the authority to exercise prudence as no meaningful response could be provided to the authority in such a short notice given the changes introduced in the latest 25-page draft of third party access rules.
Gas Port asked Ogra to allow all parties at least seven business days to review the document and provide comments for review and action. It also called for rescheduling of the October 17 meeting between stakeholders.
Ogra claims transparency
A senior official of Ogra told The Express Tribune that the authority was formulating third party access rules in a transparent manner and pointed out that it had sought comments from all stakeholders to ensure transparency in the whole process.
“The authority has invited comments from seven parties interested in LNG import and a meeting has been set for Monday for a final review of the draft, which will not be extended,” he said.
Ogra had hired an independent consultant Mehmood Elahi to come up with access rules for LNG importers keeping in view international practices and the move was aimed at overcoming energy shortages, he said.
Published in The Express Tribune, October 16th, 2011.