Trafigura Pakistan (Pvt) has applied for grant of licence to carry out regulated activity of sale of liquefied natural gas (LNG). The applicant has stated that they will procure the LNG from international market to regasify it at Pakistan Gas Port Consortium Limited Terminal and then transport it through the Sui Southern Gas Company Limited (SSGCL) network to end consumers, initially CNG stations.
The Oil and Gas Regulatory Authority (OGRA) has invited all stakeholders and general public to furnish their comments, suggestions and interventions. The public hearing will be held on December 18. In March 2018, an energy company approached the Federal Board of Revenue (FBR) for removal of a major disparity in payment of taxes between the government and private sector on LNG import.
The company proposed that as per Income Tax Ordinance, 2001, one percent tax is levied on a government designated LNG importer, previously only Pakistan State Oil (PSO) and PLL, whereas importers from the private sector are required to pay 5.5 percent tax. This disparity discourages private investments because it creates significant cash flow strain on private supply chain by increasing operating capital requirements leading ultimately to increased cost of fuel supply to consumers.
The Trafigura has planned to develop its second liquefied natural gas (LNG) import terminal in Pakistan, alongside an existing project in which it has a minority stake.
Comments
Comments are closed.