ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has sought legal opinion in writing from Shell Energy Pakistan on registration of Single Member Company (SMC) whether the company would have financial and technical backing from Shell international for sale of natural gas/LNG in Pakistan.
The Shell Energy Pakistan (SMC-Private) has applied for grant of license for sale of natural gas/RLNG.
In this project Engro Elengy Terminal Private Limited (EETL) has confirmed to provide re-gasification capacity to the Shell, while upgrading their terminal.
Further, the Shell International Trading Middle East Limited (SITMEL) is confirming to supply up to the equivalent of 150 million standard cubic feet per day of the LNG to the Shell Energy, Pakistan.
Soon after the presentation by the company representative through a virtual public hearing on their application of grant of license for sale of natural gas/RLNG, a member of the Ogra raised the question that the company was registered as a single member company in Pakistan, and this raises the question with respect to technical satisfaction whether the SMC would have support from the Shell International.
We would like to have legal opinion on this matter.
Shell Energy Pakistan said that they had been issued a number of letters by Shell for technical and financial support.
However, the Ogra asked the company to provide legal opinion in writing to the regulator on the SMC, the hearing was told.
Earlier, Haroon Rashid, CEO of Shell Energy Pakistan, in his presentation, stated that Pakistan was short of gas and LNG was a reality for the country.
He added that Shell was best and largest quality supply trader of commodity.
He said that award of gas license to Shell together with Engro would allow more competitive prices of the LNG in the country and as Shell was the company that led discovery of gas in the Sui .
We are in Pakistan for a very long time.
As the demand of LNG is increasing in the country, the Shell could make it more competitive.
Nathan Turner of the company, in his presentation, stated that Shell has a very long and proud history in Pakistan and other countries.
We are proposing to bring LNG from global portfolio to Pakistan as Shell purchases gas from different part of the world as per suitability of the consumers.
On re-gasification side, he said that Shell had gasification side, Singapore; Malaysia has provided LNG similar to Pakistan.
We hope to bring rich learning to Pakistan.
Shell is able to offer low cost LNG, at reduce risk.
In reply to a question that when the application was made and last bit of information provided to the Ogra, Haroon said that application was filed on 11th November 2019, and subsequently, a couple of queries were received and their response was sent to the Ogra in April.
On the issue of expansion of terminal, the hearing was informed that the Economic Coordination Committee of the Cabinet has approved expansion of current terminal, however, the process of expansion was still pending and the matter may take a while to conclude.
Shell officials said that following the license, the company would not commit supply of gas until all the prerequisite conditions were met.
Copyright Business Recorder, 2020
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