ISLAMABAD: After the approval of $2 billion service tolling contract to Engro Vopak Terminal Limited (EVTL) for the import of LNG, the Nawaz government has swung into action to arrange the contract for LNG supply by Qatar.
A Pakistan delegation headed by federal minister of petroleum and natural resources Mr Shahid Khaqan Abbasi is being dispatched to Doha, Qatar, where talks for LNG imports will be held on December 8, a senior official of the Ministry of petroleum and natural resources told The News.
The official said that Mr Saif ur Rehman is active in Qatar for the expected LNG supply deal for country’s benefit.
When contacted petroleum minister Abbasi confirmed that he was going to Qatar to hold talks for LNG import at affordable prices, keeping in view the international prices of LNG.
Earlier a delegation headed by Chief Minister of Punjab Shahbaz Sharif held talks with the Qatari authorities for LNG supply to energy-starved Pakistan and in return Qatari government sent the US-based ConocoPhillips Company to Pakistan on July 30, 2013.
ConocoPhillips enjoys exclusive rights in Qatar to export LNG. The company had clearly told the government that the negotiations for import of LNG would be initiated only after the government issued the tenders for LNG terminals.
It had also demanded sovereign guarantee from the government of Pakistan and inclusion of Asian Development Bank (ADB) in some components of the deal. Sui Southern has already cleared the retrofitting of LPG terminal for import of LNG and also approved the service-tolling contract to Engro Vopak Terminal Limited (EVTL) with certain conditions.
Since the government is 100 percent sure that all the conditions would be met by EVTL, it has decided to initiate serious talks with the Qatari authorities for LNG import.
According to the minister, the government wants to ensure the first flow of LNG import by November 2014. EVTL terminal will first import 200 mmcfd LNG and then 400 mmcfd. More terminals would also be installed for more LNG import, as the government wants to import 2 bcfd LNG in two years’ time.
The board of directors’ meeting of Sui Southern held on November 26 primarily wanted to link the approval of award of the contract to EVTL with the satisfaction of Public Procurement Regulatory Authority (PPRA) and National Accountability Bureau (NAB), but in the wake of tremendous pressure from top authorities in Islamabad, it approved the project with certain conditions.
The board allowed the SSGC to negotiate the LSA (LNG Services Agreement) with EVTL. The negotiations are still under way and LSA will be finalised in the next 7-10 days.
It is pertinent to mention that during the approval by board of directors of ISGS and SSGC, the concerns raised by the PPRA, NAB and TIP (Transparency International Pakistan) have not been removed.
The three entities were not even provided the details pertaining to the bidding process in the light of the terms and conditions mentioned in the tender.