The dispute between the state gas company over the allocation of pipeline capacity for the project and the sponsors of the proposed two dedicated LNG terminals (Tabeer and Energas) will last longer than investors expected. Investors in Sui Sothern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) are seeking firm commitments to allocate the pipeline's capacity prior to the construction of the two terminals at the port of Kassim, but the gas company has previously determined the pipeline's capacity. that there is no obligation to allocate. Completion of the project in accordance with the decision of the LNG Pipeline Capacity Allocation Committee in February, as stipulated by the Cabinet Energy Commission (CCoE). Energas CEO said on Saturday that, on condition of anonymity, Tabeer and Energas asked SSGC and SNGPL to allocate pipeline capacity equal to 40% of the terminal's total capacity.
He claims that SSGC and SNGPL have a capacity of 400 to 600 million cubic meters. Ft. Per day to reserve and accommodate new terminals. “This capacity can also be increased through swap agreements that allow gas companies to replace the gas system with liquefied natural gas at private terminals,” he said. However, SSGC and SNGPL want to cover the cost of UFG losses (not reported for gas) in the range of 10 to 18% versus six natural gas losses (RLNG) identified by Ogra in Pakistan in January 2021. The final stage before the start of development by the two SHNG companies includes permits for the Ogre construction, gas transportation regulations and contracts with both gas companies.
Ogra will hold a public hearing on Monday morning in Karachi to quickly provide investors with permits for the terminal, including the facility itself. Nevertheless, terminal developers have long accused state-owned companies of creating obstacles to the development of the project. Two private projects with GPG capacity from 750 to 1000 million cubic meters. Feet each will begin in the first quarter of 2023 over two years. But the gas company has a different story.
CCOE's February decision to allocate terminal reserve capacity for the existing pipeline was in three parts. First, Ogra can provide free capacity every 3 months (subject to availability) (May to September, low demand months). Once the existing system meets the specified requirements, it is deployed to a new terminal. If the specified requirement exceeds the reserve capacity, they are evenly distributed. But this is a short-term action, ”said an employee of the gas company.
The long-term permanent capacity allocation proposed by CCOE is to allocate all required capacity to private terminals only after the completion of the North-South gas pipeline. Gas workers are perplexed why developers are in a hurry to distribute the pipeline's capacity. The official said: “The government has promised to provide capacity when it starts operating in 2023. Since the new pipeline will be completed by 2023, trust in the government is needed. ”
As Pakistan has become one of the fastest growing LNG markets since importing its first cargo in 2015, there is an urgent need to expand its import capacity to meet the growing demand for gas imports in the future. Both projects plan to import LNG to private utilities, cement, fiber, fertilizers and other businesses through floating storage and regasification unit (FSRU). Pakistan currently has two terminals for liquefied natural gas with a total capacity of 1,350 million cubic meters. Feet per day, but the capacity of both terminals has been agreed with the government.
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