Specific general-purpose berth at Gwadar port: Minister refuses to grant permission

ISLAMABAD: Minister for Maritime Affairs (MoMA) Ali Zaidi has reportedly refused to grant permission for specific general-purpose berth at Gwadar port, sought by Gwadar Gas Port Limited (GGPL), sources close to Secretary Petroleum told **Business Recorder.**

Zaidi conveyed his mind at a recent meeting of Cabinet Committee on Energy (CCoE) presided over by Minister for Planning, Development and Special Initiatives, Asad Umar.

Deputy Chairman, Planning Commission informed the CCoE that Prime Minister Imran Khan while chairing a meeting on LNG terminal + virtual LNG pipeline held on November 15, 2021, desired that the Deputy Chairman, Planning Commission coordinates implementation of the project and resolve issues relating to it.

However, he added that he was also directed to assess the safety and viability of using berth 3 for LNG handling in the light of international best practices and safety protocols.

The CCoE was informed that in pursuance of the directions, multiple consultative meeting with stakeholders were held.

Following recommendations were submitted to the CCoE: (i) safety and viability of using berth 3 for LNG handling in light of international practices and safety protocols will only be ascertained when the potential developer conducts the requisite studies and these are reviewed by OGRA/ Port Authorities; (ii) assessment of suitable sites by port authorities themselves would take considerable time and cause delay in the introduction of vehicle-based LNG import. It would also require new policy framework; (iii) existing LNG policy allows potential developers to carry out studies/ assessment at the site at their own cost and risk. Potential developers should be allowed to conduct all the required studies. OGRA/ Port Authorities would thereafter review and consider approval of these studies as per Policy/ Rules; (iv) OGRA should process all pending applications as per approved LNG Policy 2011 and LNG Rules 2007; (v) MoMA and Port Authorities should process the pending applications as per LNG Policy 2011 and LNG Rules 2007 in accordance with past precedents. This would allow the potential developers to conduct the required studies and, if approved, move to the next stage of construction licence; (vi) to ensure additional LNG supply during next winters, strict timelines should be given to the developers to complete the requirements, against performance guarantees as per policy; and (vii) a LNG Task Force has been constituted through Clause 7.4 of the LNG Policy. All relevant stakeholders are members of the Task Force. It is mandated to act as a “one-stop-shop” to address all issues concerning LNG import projects, including the interpretation of policies and regulations. The Task Force should be active and facilitate the developers/ investors to fast-track completion of LNG import projects as soon as possible.

The report prepared by Deputy Chairman Planning Commission was discussed threadbare. The Minister for Planning, Development and Special Initiatives observed that the matter relating to grant of provisional licences should be resolved by the Ministry of Maritime Affairs (MoMA) in line with the LNG Policy 2011, read with relevant LNG Rules.

The Minister for Maritime Affairs contested that no action was pending on part of MoMA. He clarified that the Gwadar Gas Port Limited (GGPL) was requesting permission on specific general-purpose berth at Gwadar Port, which cannot be granted; other than that MOMA has no objection to granting permission.

However, Asad Umar observed that the country is facing acute shortage of gas. In spite of various past commitments by the concerned authorities, the issues are still unresolved. He directed for immediate action on all the pending matters so that future energy needs are fulfilled. He emphasized that no further delay will be acceptable in this regard.

Deputy Chairman Panning Commission informed the forum that there is a Task Force headed by the Secretary Petroleum, in the LNG policy, 2011, which is mandated to act as a one-stop-shop to address all issues concerning LNG. It was suggested that the task force may be directed to hold a meeting to resolve issues on the subject in view of the above recommendations and a report in this regard should be submitted to the CCoE in the next meeting.

After discussion, the CCoE decided that the concerned Ministries /Divisions shall move summaries on the way forward within one week, in compliance of LNG Policy 2011.

In case of disagreement of the Ministry/Division with any recommendation, a summary shall be moved for the approval/ information of the relevant forum i.e., CCoE/ ECC, as the case may be. The Task Force headed by Secretary, Petroleum Division, established under clause 7.4 of the LNG Policy 2011, to deliberate on the recommendations of the Committee and resolve the disagreements among various stakeholders, if any, would submit a report in this regard in the next CCoE meeting. Moreover, Secretary Petroleum Division shall also submit a forecast on demand/supply of Gas for winter of 2022 and 2023 in two weeks.

Copyright Business Recorder, 2021