ETPL gets LNG terminal licence

Meets all requirements of LNG policy and rules, says regulator.


Our Correspondent June 19, 2014
Initial volumes: 200 mmcfd, is the volume of LNG the government will import in the first phase. PHOTO: FILE

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has granted a licence to Elengy Terminal Pakistan Limited (ETPL) for constructing a liquefied natural gas (LNG) re-gasification terminal that will handle gas supplies expected to start arriving next year.

In a statement issued here on Wednesday, Ogra said it issued the licence after ETPL met all requirements of the LNG policy and rules.

The company had filed an application with Ogra, seeking licence for building an LNG receiving and re-gasification facility at the Port Qasim. Before awarding the licence, Ogra said it examined the application under its rules and also got it evaluated by an internationally reputed independent consultant, SGS.



The consultant, in its evaluation report, agreed that ETPL’s application was in compliance with Ogra’s LNG Rules 2007 and the federal government’s LNG Policy 2011.

Necessary no-objection certificate from the Ministry of Defence and approval of the Port Qasim Authority have also been submitted by the project developer.

Ogra conducted a public hearing on the matter and concerns of stakeholders were also taken care of before the grant of licence.

Keeping in view the fulfillment of technical and legal requirements by ETPL and gas shortage in the country that demanded fast-track import of LNG, Ogra said it granted the licence to ETPL for construction of the terminal. “This decision will help ease energy crisis in the country,” it added.

According to officials of the Ministry of Petroleum and Natural Resources, ETPL and Sui Southern Gas Company had already signed an LNG services agreement following approval of the Economic Coordination Committee and cabinet.

After coming to power in June last year, the PML-N government had approached Qatar for LNG import but Doha asked Islamabad to first set up a terminal for handling supplies.

ETPL, a subsidiary of Engro Corporation, is bound to set up the terminal in 11 months since the award of contract.

Officials believe the establishment of the terminal will open a new market of LNG, which will replace furnace oil consumption in power plants.

“LNG will not only be cheaper, it will also lead to clean energy in Pakistan,” an official remarked.

Published in The Express Tribune, June 19th, 2014.

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