Tender For Utilization Of LNG Terminals' Private Capacity Soon

ISLAMABAD, (UrduPoint / Pakistan Point News - 30th Dec, 2020 ) :The government has planned to float tender for utilizing 100-150 Million Cubic Feet per Day (MMCFD) private capacity of Liquefied Natural Gas (LNG) terminals within next few days under its ease-of-doing-business strategy to encourage private companies in the energy sector.

"The government permission in that regard is already in place.

Accordingly, construction on a private sector, LNG terminal is also going to start at the end of the next month, while physical work on another merchant terminal to commence in second half of the year 2021," a senior official privy to the petroleum sector developments told APP.

During the last one-and-a-half-years, he said the Federal government had been requesting the Sindh government to grant 'Right of Way' to the Sui Southern Gas Company (SSGC) for construction of a 17-Kilometer pipeline to transport additional LNG from the Port Qasim.

He said the federal government was already utilizing full capacity of the existing transmission line of 1,200 MMCFD gas.

"Additional pipeline was needed for transportation of the additional LNG supply from the ports," he added.

However, the official said, the Sindh government had allowed the SSGC to construct the 17-KM pipeline in the third week of October 2020.

He said the company had completed the pipeline a couple of days back, adding "Had the permission granted earlier, the additional private capacity of the LNG terminals would have been in the system during this peak winter period � December-January." After setting up the terminals, he said the private companies would import and sell the commodity on their own without any involvement of the government except regulation matters.

The official said a formula already existed under which the private sector could import LNG as per its requirements, get it injected into existing gas transmission network and sale to their industrial clients.

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