Government asked to make arrangements for LNG storage

All Pakistan Textile Mills Association (Aptma) has proposed the government to invest in setting up terminals for import of LNG storage and let the utility companies, including SNGPL and SSGC, to import gas as per their supply requirements. Talking to Business Recorder, the Aptma Group Leader Gohar Ejaz said he has submitted way forward on meeting energy shortage through import of LNG. The recommendations would be submitted to the Economic Co-ordination Committee (ECC) for further action.
Gohar Ejaz is also heading energy committee with secretary petroleum and secretary finance as members. The committee was constituted by the Prime Minister in follow up of his meeting with Aptma delegation, agitating against severe gas shortage of 1000mmcfd during upcoming winter. Aptma expressed grave concerns over the situation and pre-empted awkward situation in case no timely addition to gas supply takes place in the system.
Gohar said the industry would be closed down in the absence of timely addition of gas to the supply lines and the only option available with the government is to ensure early import of LNG. Textile industry would be major suffered from the month of December to February in case no improvement in gas supply takes place well in time, he feared.
He said the government following the policy of waiting for private sector to invest in building terminal to import LNG. Three licenses were issued to this effect but to no avail without a suitable linkage between storage of LNG and its further distribution.
Gohar said he has proposed the government to set up terminal and the utility companies should place order directly to any destination in the world for supply of LNG. The facility of LNG terminal should be bore with the government instead of waiting for the private sector to come in and investment, which is not feasible, he said.
He said the government has already imposed Gas Infrastructure Development Cess, which would be spent on developing infrastructure. He said a timely start of construction of LNG terminal would take 18 months to complete. Further, he said, the Cess collected from the industry should be spent on more indigenous exploration of gas. He disclosed that the government would soon expand the scope of Cess and more industrial sectors would be included to the list.
He made clear that the private sector was not in a position to set up terminal therefore the government should not waste time any further and start ground work immediately. He also urged the Oil and Gas regularity Authority (OGRA) to come up with weighted average of imported LNG so that the utility companies could bill the customers accordingly.