Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

Body formed to examine gas supply chain – Newspaper

usscmc by usscmc
January 19, 2021
Body formed to examine gas supply chain – Newspaper
Share on FacebookShare on Twitter

ISLAMABAD: Amid growing number of suppliers competing for pipeline and terminal capacity, the Cabinet Committee on Energy (CCoE) on Monday constituted a subcommittee to examine in detail the availability of pipeline capacity and how to allocate it for transportation of re-gasified liquefied natural gas (RLNG).

Informed sources said the CCoE met briefly under the chairmanship of Minister for Planning and Develop­ment Asad Umar as some of the relevant stakeholders were based in Karachi and appeared to be unable to optimally contribute through video conference.

Therefore, Mr Umar constituted the subcommittee led by himself and comprising ministers and special assistants of the ministries of energy and maritime affairs to examine the entire natural gas/LNG supply chain and firm up within 10 days a holistic way forward on the issue.

The sources said that with the completion recently of a 17-kilometer pipeline from Port Qasim to SSGCL’s Pakland tie-in point, the overall pipeline capacity for transportation of LNG had improved by 500-600mmcfd (million cubic feet per day). However, the LNG re-gasification capacity at the existing two terminals is limited.

At the same time, two prospective investors of LNG terminals, which had recently been given sales and marketing licences by the Oil and Gas Regulatory Authority (Ogra), plan to set up their own terminals expected to come online within two years. In the meanwhile, they want unutilised capacity owned by government entities in the short term to meet the demand of their dedicated consumers.

On the other hand, Ogra has also granted virtual pipeline licences to two more companies — LNG Easy to be based at Port Qasim and Daewoo Gas at Gwadar — to move their LNG through bowsers.

While these new developments take shape, the gap between demand and supply of gas is expanding and the government has made fresh policy adjustments in terms of gas supply to various sectors and will have to disconnect gas supply to various categories of captive power plants.

According to a summary, the Ministry of Maritime Affairs has proposed to the CCoE that to provide capacity in the existing pipeline to new LNG developers and to attract foreign investment, “if there is any pipeline capacity in the existing pipeline network, it may be used by the government importing LNG itself till the time new terminals are commissioned” and then the existing pipeline capacity could be transferred to new terminals.

Secondly, any capacity, whether ‘unutilised’ or ‘excess’, should be offered to private parties only on a short-term three-month forward visibility basis, after approval from the relevant stakeholders, the ministry said.

It said that as highlighted by the Ministry of Energy (Petroleum Division) based on the decisions of the Economic Coordination Committee (ECC) of the cabinet, gas utilities should be directed to share draft Gas Transmission Agreement (GTA) with both the new LNG terminal developers — Tabeer Energy and Energas.

The meeting was informed that a cabinet meeting had on Aug 2, 2019 decided that provisional Letter of Intent (LoI) would be issued to all five applicants for terminal operators who had conducted relevant surveys on the sites assigned to them.

The Port Qasim Authority (PQA) issued the LoI to the five terminal operators. Two of them — Energas Terminal (Pvt) Limited and Tabeer Energy (Pvt) Limited — accepted the terms and conditions and deposited $2 million each as part of a concession fee (out of total $10m each) with the remaining $8m to be deposited upon signing of implementation agreement.

The summary said the maritime affairs ministry had in collaboration with the Petroleum Division facilitated the new LNG terminal developers in securing NOCs (no-objection certificate) from various agencies and ministries for completion of new LNG terminals. Allocation of capacity in the existing as well as planned gas pipeline to transmit LNG from new terminals and grant of NOC by the Ministry of Defence took time.

On the directives of the cabinet, the Ministry of Defence issued the NOC within the 30-day deadline in view of past precedents on record. The Petroleum Division had committed in October last year to the new terminal operators allocation of LNG in the existing pipeline on a ‘first-come-first-serve’ basis and providing capacity to both terminal operators in a new planned gas pipeline within 30 days.

However, this got delayed and both Energas and Tabeer complained that the Petroleum Division might issue the existing pipeline capacity to the terminal operators on a ‘first-come-first-serve’ basis, which was in favour of the two already existing terminals which had guaranteed re-gasification charges and did not want the new players to come in despite having no burden on the government.

Both the new terminal developers promised to complete their projects within 24 months after the signing of implementation agreement provided the Petroleum Division commits pipeline capacity.

Published in Dawn, January 19th, 2021

usscmc

usscmc

No Result
View All Result

Recent Posts

  • How Hapag Lloyd captured a major market share in the Container Shipping Industry in USA
  • Why USA’s East Coast is the Favorite Destination for Manufacturing Companies
  • How Trade Relations Between the USA and UK Improved After Keir Starmer Became Prime Minister
  • Tips and Tricks for Procurement Managers to Handle Their Supplier Woes
  • The Crazy Supply Chain of Walmart Spanning Across the Globe

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2025 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2025 www.usscmc.com