The Ministry of Petroleum and Natural Resources has proposed to the government to allow Pakistan State Oil (PSO) negotiate the prices of Liquefied Natural Gas (LNG) with potential LNG suppliers and producers, it is learnt.
According to a summary of the petroleum ministry forwarded to the Economic Co-Ordination Committee of the Cabinet (ECC) "it is proposed that this Ministry through Pakistan State Oil Company Limited (PSOCL), which is already negotiating with Qatargas, may be allowed to negotiate procurement of LNG from other LNG producing/exporting countries under government to government arrangements.
The LNG Price Negotiation Committee (PNC) constituted by ECC vide case No ECC-110/17/2014, dated August 15, 2014 as mentioned above may be authorised to negotiate the LNG price and other important aspects with the LNG producing/exporting countries under government to government arrangements."
For the import of LNG, the ECC vide case No ECC-94/08/2013 dated July 2, 2014 authorised the ministry to engage in negotiations with Qatargas on government to government basis for importing LNG up to 500 MMCFD on delivered ex-shipment basis. Accordingly, PSO and Qatargas Operating Company Limited (QOCL) have been nominated by respective governments to negotiate the LNG Sales Purchase Agreement. To negotiate the LNG price and other important aspects with Qatargas the ECC vide case No ECC-110/17/2014, dated August 15, 2014 have approved constitution of a LNG Price Negotiation Committee (PNC) and negotiations with Qatargas are in progress.
USAID has engaged a LNG consultant company namely M/s Fact Global Energy to provide consultancy for LNG project. The consultant in its procurement strategy and presentations to PNC have advised that in addition to negotiations with Qatargas on government to government negotiations basis, other LNG producers such as PETRONAS, Malaysia may also be tapped for LNG supply.
The summary adds that M/s PB Trading Sendirian Berhad, a wholly owned subsidiary of Brunei National Petroleum Company Sendirian Berhad also known as Petroleum Brunei, which is a national oil company of Brunei Darussalam and Petro China, one of China's largest petroleum companies have expressed interest in supplying LNG to Pakistan on government to government arrangements in addition to above, other countries like Australia, Nigeria, Indonesia, Algeria, Russia, Oman, Egypt, UAE, Yemen and Norway are also exporting LNG.
Pursuant to the ECC and Cabinet's approvals of Fast Track LNG Services project vide case No ECC-45/7/2014 dated 28-02-2014 and vide case No 77/03/2014 dated 18-04-2014, respectively, Sui Southern Gas Company Limited (SSGCL) and Engro Elengy Terminal (Pvt) Limited (EETPL) executed an LNG Services Agreement (LSA) on 30-04-2014 for provision of LNG receiving, storage and re-gasification service under a toiling fee arrangement. EETPL have also executed an Implementation Agreement with Port Qasim Authority on 23-06-2014 to develop and operate LNG Terminal at Prot Qasim. The terminal is scheduled to be operational by March 31, 2015.
The summary was circulated to Finance, Planning, Water & Power, Foreign Affairs, Law, Justice and Human Rights Division, Federal Board of Revenue and Board of Investment for comments. The proposal contained in para-4 above is submitted for considering approval of the ECC on the Cabinet. The Minister for Petroleum and Natural Resources has seen and approved submission of the summary to the ECC of the Cabinet.
Comments
Comments are closed.