TPA Code Drafted For Gas Network's Use By Private LNG Importers: Senate Body Informed

ISLAMABAD, (UrduPoint / Pakistan Point News - 26th Nov, 2021 ) :Senate Standing Committee on Petroleum was informed on Friday that the Third Party Access (TPA) code had been drafted aimed at encouraging and enabling the private sector entities to use the existing gas transmission network for transportation of their imported Liquefied Natural Gas (LNG) to consumers.

The committee meeting, chaired by Senator Muhammad Abdul Qadir, was also briefed Secretary Petroleum Division Dr Arshad Mahmood that private sector had been engaged in construction of two more LNG terminals to meet the country's ever-growing energy needs.

He said a 42-inch 1100-kilometer RLNG pipeline had been laid while the plan for another pipeline was in the advanced stage to transport the imported volumes of RLNG from the new plants of the private sector to consumers.

Committee Chairman Abdul Qadir stressed the need for giving private sector due responsibility in import of LNG so that burden on the government could be reduced. "We should definitely go towards private parties for this purpose," he said, adding that all hurdles in that regard should be removed as it would help the government ensure uninterrupted supply of the commodity to consumers and save billions of rupees.

Replying to a query, the secretary said the government was focusing on private sector's effective participation in the LNG supply chain, construction of new LNG terminals, Third Party Access to terminals and pipeline network, construction of new pipeline from Karachi to Lahore, development of gas storages and LNG virtual pipeline.

Dr Arshad Mahmood said the Petroleum Division was also working on a new LNG Policy for improved policy and regulatory framework with special focus on private sector participation in the LNG sector.

Despite the fact that existing LNG terminals were running at peak capacities and utilization of terminals was way higher than global average, he said Pakistan LNG Limited (PLL) was discussing the TPA to accommodate the private sector.

The secretary said there were numerous legal, commercial/financial, operational and technical issues that needed to be addressed for allowing TPA to the private sector.

He also presented different issues like allocation of pipeline capacity from Sui Southern Gas Company and Sui Southern Pipelines Limited, Port Qasim's ability to handle numbers of LNG vessels and night navigation for LNG vessels.

He was of the view that PPRA (Public Procurement Regulatory Authority) rules were not ideal for on spot buying of RLNG supplies, which needed the required amendment.

The committee chairman assured the Petroleum Division to send a written recommendation to the Finance Ministry on the matter. "We are here to help and we will do whatever we can to assist the Ministry in this regard. This is not something which cannot be fixed," Abdul Qadir observed.

While discussing the problems faced by people of Quetta, Ziarat and other areas where the weather reached below the freezing point during winter, The Committee Chairman said people living in those areas should not be charged higher slab rates, as their consumption surged only during winter months of extreme cold. "People are being charged high just because of this slab formula. Appropriate measures should be taken to provide relief to these people. They cannot afford to pay the gas bills during these months." He suggested the Petroleum Division to discuss the issue with local representatives and devise a way out and introduce subsidized rates for these specific areas.

He directed the officials concerned to come up with a plan accordingly in the next meeting of the committee.

Among others, the meeting was attended by Senators, Afnan Ullah Khan, Saadia Abbasi, Fida Muhammad, Aon Abbas, Qurat Ul Ain Marri and Engineer Rukhsana Zuberi, officials from Petroleum Division, SSGC, SNGPL and PLL.

Earlier, the committee members expressed displeasure over absence of the minister concerned from the meeting and staged a token walkout.