No relocation of PQA LNG terminals for existing investors: Jhari Creek to be offered to new parties

The government has decided not to relocate the liquefied natural gas (LNG) terminals at Port Qasim for existing investors. However, new investors would be relocated to Jhari Creek, according to official documents available with Business Recorder. This was decided in a recent meeting of the LNG Task Force for LNG import under Third Party Access Policy.
The meeting was chaired by Dr Asim Hussain, Federal Minister for Petroleum and Natural Resources, and was attended by Secretary Petroleum, Joint Secretary Finance, officials of the Port Qasim Authority (PQA) and other relevant officials. The stakeholders also urged the government to provide infrastructure for 2 BCFD. "An LNG developer/provider can not be expected to set up infrastructure for 2 BCFD, which falls under the franchise area of Sui Southern Gas Company (SSGC)", applicants viewed.
However, the government declined their request and said that 2BCFD has been indicated keeping in view future gas demand. The re-gasified liquefied natural gas (RLNG) supplier/seller shall lay the pipeline/infrastructure between the LNG terminal and specified entry points on transporter's network. The government also informed the applicants that RLNG sellers would be responsible for dilution and supply of RLNG as per transporter/Oil and Gas Regulatory Authority (Ogra) specification.
The capacity allocated to a party in the LNG zone would not be allowed to assign it to another party, the government informed the applicants. Ogra is expected to shortly issue rules, the framework for ascertaining the "first come first serve" criterion and allocation of capacity stipulated in Third Party Access (TPA) Rules.
The government informed the stakeholders that keeping in view the prevailing gas shortfall and resultant load management in the country adversely affecting the economy an aggressive timeline of June 2012 has been set after detailed deliberations. However, parties offering timelines beyond the specified date will also be given consideration on merit.
SSGC is expecting to have initially an entry and exit capacity of 500 mmcfd RLNG, supply of which must commence in first or, at the latest, the second quarter of 2012. The SSGC has reportedly received a tremendous response from local and international suppliers to its invitation for the import of LNG under TPA.