Govt to back LNG projects, says minister

Reports yesterday said that govt refused to provide guarantees.

ISLAMABAD:


Minister of State for Finance Saleem H Mandviwala has said that the finance ministry will support LNG import projects by extending sovereign guarantees.

While talking to The Express Tribune, he said the government will open a tender within ten days for LNG import of 200 million cubic feet per day (mmcfd). He said that period of this tender will be 30 days, in order to expedite the process of LNG imports.



He claimed that the finance ministry had, in principle, supported the extension of sovereign guarantees for LNG import projects.  “We have taken an in principle decision to support LNG import projects,” he said.

Under the proposed LNG import plan, the government wants to continue with three LNG projects, out of which bids would be invited for two projects for the import of 400 mmcfd LNG each, while Sui Southern Gas Company Limited (SSGCL) will bid for import of 200 mmcfd LNG on a fast-track basis.

Private parties, mainly Turkish-based Global Energy, who had obtained LNG terminal licences from the Oil and Gas Regulatory Authority, had demanded sovereign guarantees for the project. After failing to arrange the guarantees from the finance ministry, the petroleum ministry had sought approval from the Economic Coordination Committee.

Published in The Express Tribune, November 23rd, 2012.

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