PSO requires licence for sale of LNG to gas companies

Pakistan State Oil (PSO) required a licence for sale of LNG to gas utility companies, according to recommendations of a committee constituted by the Economic Co-ordination Committee (ECC) of the Cabinet. Sources said a secretary-level committee was constituted by Economic Co-ordination Committee (ECC) of the Cabinet to suggest recommendations on legal as well as commercial aspects of RLNG. The committee comprised Secretary Finance, Petroleum and Natural Resources as well as Secretary Law and Chairman Ogra.
On the issue of allowing PSO to sell LNG/RLNG to gas utility companies or third party consumers, the committee recommended that the sale of LNG/RLG to gas utility companies and third party consumers by PSO is a separate proposal. However, OGRA stated that PSO as a seller of LNG can sale LNG to gas utility companies where a license is required for sale of RLNG.
The committee''s recommendations were also sought with respect to a matter that since Sui Southern Gas Company (SSGC) has already entered into an LNG services agreement for receiving, storage, and re-gasification of LNG with Engro Elengy Terminal Private Limited (EETPL), therefore, PSO will not be required to enter into such arrangements/agreements.
The committee recommended that it was observed that this proposal involves two separate matters. In terms of the LNG Policy 2011, PSO as LNG buyer is required to enter into an agreement with the terminal operator. However, in this case PSO has no agreement with terminal operator as the terminal services under MNG service agreement (LSA) of SSGC with EETPL will be utilised.
The Committee recommended that in order to address this matter appropriate amendment in LNG Policy 2011 is required. Ministry of Petroleum was of the view that this amendment may be approved by the ECC as it was a forum which approved LNG Policy 2011. Accordingly, the Committee underscored the need for placing the matter before ECC. Sources added a number of meetings of the committee were held to finalise the recommendations which were submitted to the ECC meeting presided over by finance minister Ishaq Dar for approval. An official said the committee placed on record the report presented by a secretaries-level committee. in the subsequent meeting, on a proposal of ministry of petroleum and natural resources, the ECC approved an amendment in the relevant provision of the LNG policy 2011 to ease the technical hurdles in LNG supply chain for smooth supply of the product.