The Oil and Gas Regulatory Authority (Ogra) considered the request of Liquefied Natural Gas importers to amend the LNG Policy, according to which the developers of LNG would have the right to directly sell Re-gassed Liquefied Natural Gas (RLNG) to end users.
According to sources in Ogra, the importers of the LNG have requested for amending the existing LNG Policy, especially clause 6.3(b), whereby the approved price of RLNG by the authority needs amendment. Sources said "the LNG developers/buyers will have the right to sell RLNG to end users directly based on a negotiated price subject to approval of Ogra."
The import of Liquefied Natural Gas is being considered under a Third Party Access (TPA) regime to bridge the severe gas supply-demand gap in the country. In a recent meeting of the LNG task force held with Dr Asim Hussain, Federal Minister for Petroleum and Natural Resources it was decided to form a task force with the objective of ensuring speedy implementation of LNG imports, and assured that a level playing field will be provided to all LNG suppliers to meet the rising energy requirements of the country.
The meeting was part of the LNG Policy 2006, and would act as a "one-stop-shop" to address all issues concerning LNG import projects, including the interpretation of policies and regulations. The development of an interconnection from entry point at LNG terminal to the nearest specified entry point in SSGCL transmission system, will also be laid and developed by the investor.
The transmission commitment and infrastructure should have the capacity of additional supply up to 2 BCF D subject to the need and demand. The government informed the stakeholders that keeping in view the prevailing gas shortfall and resultant load management in the country adversely affecting the economy an aggressive timeline of June 2012 has been set after detailed deliberations. However, parties offering timelines beyond the specified date will also be given considered on merit.
Sui Southern Gas Company Limited (SSGCL) is expecting to have initially an entry and exit capacity of 500 mmcfd RLNG, supply of which must commence in first or, at the latest, the second quarter of 2012. The development of an interconnection from entry point at LNG terminal to the nearest specified entry point in SSGCL transmission system will also be laid and developed by the investor.
The meeting also dwelt on subjects relating to the pipeline system, pricing and minimisation of wastage. The task force would be headed by Secretary Petroleum, and other members would include Additional Secretary of Finance, representatives from Defence, Industries, Production, Ports and Shipping Divisions, a representative of Ogra, Member Customs FBR, Chairman of the concerned seaport authority, Director Generals of the concerned EPA, Coast Guards and Maritime Security Agency and Commander Karachi or COMCOAST Gwadar.
SSGCL has invited submissions of Expression of Interest (EoI) from companies interested in capacity allocation in SSGCL gas transportation system. Such companies must be willing to develop their own LNG FSRU, arranging their own supply of LNG and having their own buyers of RLNG, which may also include the Sui gas companies. Interested companies shall confirm that they will be able to satisfy reasonable technical and commercial criteria as specified by SSGCL and Ogra under the prevailing LNG policy and TPA rules. The SSGC has reportedly received a tremendous response from local and international suppliers to its invitation for the import of LNG under TPA.