Companies failing to meet deadline as LNG Import plans suffer – Pakistan oil and gas news
Importers have not even found their global buyers so far, said an official request
Oil and Gas Regulatory Authority (Ogra)
can now unassign importers given pipeline to transport 1.4 billion cubic feet of gas per day to consumers.
"The LNG influential lobby is trying
to request an extension in the financial closure in relation to capacity allocation of the portfolio," said a senior oil ministry official.
Closure of the exercise is the culmination of the documentation process and business model has been satisfied.
assigned pipeline capacity from the three developers of LNG in October 2011 to use the pipeline network of state-owned gas distribution for imported LNG to consumers.
"Importers of LNG is expected
that the financial arrangements, agreements with suppliers of LNG to buyers and to complete financial closure in April-end, but not this," said an official.
gas distributors in South Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) were also directed to invest $ 1.2 to $ 1.4 billion to establish new pipeline and create additional space for suppliers of liquefied natural gas.
At present, SSGC has the ability to transport 500 million cubic feet of liquefied natural gas per day.
"Now, is held by Ogra whether to revoke the allocation of capacity or extend it," said a senior government official.
Global Energy has committed to bringing the first shipment of
500 mmcfd in June followed by Engro range in December 2012 and the gas port in the first quarter of 2013.
Ogra had assigned pipeline capacity of 500 million cubic feet per
day (MMcfd) to each of the Global Energy and Engro and 400 MMcfd of gas to Pakistan port.
time of the granting of the allocation of capacity, Ogra had warned developers of LNG for the cancellation and recovery of bank guarantees, but to get the gas in the country within the scheduled time.
government has also reduced the bank guarantees of these developers $ 10 million to $ 5 million even though it failed to complete the financial closure in relation to the allocation of capacity within the agreed timeframe," said an official.
to the terms and conditions, importers of liquefied natural gas is expected to provide performance guarantee bank $ 10 million, is redeemable in Pakistan within 90 days of the capacity allocation