The federal government has informed the Supreme Court that Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan (IP) gas import projects could not be undertaken on account of political, economic and security issues in the region. It said that in view of this situation, the import of liquefied natural gas (LNG) appeared to be the most viable solution to meet the energy deficit.
Ministry of Energy (Petroleum Division) on Wednesday submitted an interim report in response to the petition of Asad Kharral, a journalist, regarding LNG import. It is also told that comprehensive report will be submitted after receipt of response from various stakeholders to whom letters have already been sent.
The report states that Pakistan is an energy deficit country where the demand outstrips the supply which has adversely affected the economic growth of Pakistan, adding that Pakistan has been endeavoring to increase indigenous production through extensive exploration development and production by offering globally competitive market incentives by promulgation of various petroleum policies. However the indigenous resources are not sufficient to meet the energy demand; therefore, there is much need for imported energy for sustainable economic development of Pakistan.
It is also submitted that in the past, attempts were made for import of LNG on integrated basis and suppliers were responsible to develop the terminal and other allied infrastructures. However, later on, the government decided to follow an 'unbundled approach' with separate contracts for LNG procurement and re-gasification, rather than an integrated approach to import LNG.
The report says that tolling charges of the terminal was determined on the basis of competitive bidding process undertaken by Inter-State Gas System (ISGA). The tender process was approved by the boards of ISGA and SSGL.
Meanwhile, Deputy Attorney General Nassar Mirza requested the three-judge bench, headed by Chief Justice Mian Saqib Nisar, to give three weeks time to submit a comprehensive report over the petition.
The applicant contended that Ogra being a competent forum was ignored to decide / notify LNG prices. Twenty shipments of LNG were procured on spot without a government-to-government agreement. Malafide appointments of cronies through fixed headhunter companies were made at exorbitant remunerations without any merit to serve the vested interests. It is worth mentioning that the apex court has already rejected Sheikh Rashid's plea on the same matter. The hearing of case was adjourned for three weeks.
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