PLL, PGPC reach deal to use LNG terminal excess capacity

Ibn-e-Ameer

The board of directors Pakistan LNG Limited (PLL) has allowed PGPC to utilize 100 mmcfd excess capacity of the LNG terminal.

PLL awards LNG contract at record high price of $30.6 per MMBtu

Now, Economic Coordination Committee (ECC) is likely to stamp a deal between Pakistan LNG Limited (PLL) and PGPC to utilize the excess capacity of the LNG terminal.

Board of directors PLL has already approved a deal under which PGPC will utilize 100 mmcfd excess capacity.

However, PLL will utilize 50 mmcfd excess capacity of the second LNG terminal owned by PGPC.

But, PGPC will not charge a fee for this extra capacity.

It is also interesting to note that Pakistan LNG Limited (PLL) has already failed to use the full allocated capacity of the second LNG terminal.

PLL has an allocation of 600 mmcfd LNG handling capacity. However, it has failed to utilize this full capacity.

The consumers had to pay $99 million capacity payments during the last three years due to the failure of the PLL to use full capacity.

Now, it has obtained another 50 mmcfd capacity despite failure in past to use the full capacity of 600 mmcfd.

The private sector has been struggling to seek allocation of idle capacity of LNG terminal which would have reduced tolling fee.

But, it created hurdles and did not allocate capacity to the private sector to maintain its monopoly.

Cabinet had decided in July 2020, allow the private sector to import LNG cargo in Pakistan by utilizing the idle capacity of the LNG terminal.

But the private sector has failed so far to bring a single ship of LNG due to monopolistic practices of PLL.

The current secretary of petroleum Dr Arshad Mahmood had taken an interest to ensure the use of the extra capacity of the LNG terminal.

The PLL has no permanent head for long. Therefore, the management of Pakistan LNG Limited (PLL) had failed to make a proper policy to arrange LNG imports.

At present, the country is passing through a critical time as CNG stations were shut down in Sindh and Balochistan for two months.