Imports of LNG programs face challenges – Oil and gas news

Imports of LNG programs face challenges – Oil and gas news

Liquefied natural gas (LNG) import program is facing serious hiccups, as oil and gas management (Ogra) has decided to cancel the pipeline capacity allocated to LNG importers after the Oil Ministry in confidence due to the inability of importers to perform
obligations on time.
October 2011, Ogre allocated capacity will be up to three developers of LNG projects, which will allow them to use the pipeline network of public distribution companies to transport 1.4 billion cubic feet per day (feet per day) of imported liquefied natural
gas to consumers.
"They did not even bother to global buyers so far," the official said. He said the oil ministry were involved in the distribution pipeline capacity to import LNG, calling to the ministry Ogre on board before going ahead with the power of repeal.
Due to the delay, the influential lobby LNG tried to request an extension for a period of financial close on the capacity of pipelines, oil ministry spokesman said. The financial closure of the completion of technical documentation and training of a satisfactory
business model.
In accordance with the agreement reached with the government, LNG importers were to enter into financial arrangements and agreements with suppliers of gas and LNG to customers in late April, but they might not be able to achieve.
In its recent decision on the revenue requirements of gas, Ogra also rejected the claim made by the gas billion rupees Sui Southern Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) for the construction of LNG infrastructure in connection with the
slow progress on the commitments made by the importers.
Previously, to advance this project, the government appealed to the SSGC and SNGPL to invest $ 1.2 to $ 1.4 billion for the construction of new pipelines and to create opportunities for suppliers of LNG.
At present, SSGC has the ability to transport 500000000 cubic feet of LNG in the energy day.Global promised to bring the first batch of 500 mmcfd by the end of June, after which Engro the same amount in December 2012, while imports of gas port 400 mmcfd in
the first quarter of 2013.
During pipeline capacity allocation, Ogre warned importers of LNG, and the abolition of exemptions of a bank guarantee, if they did not bring the gas on time.
The Ministry provides a bank guarantee of $ 35 million for importing LNG, but at the time of the distribution pipeline capacity, the amount was set at $ 10 million.
He was later reduced to $ 5 million, said spokesman ministry.However, importing liquefied natural gas, which was to provide a bank guarantee for 90 days on the allocation of bandwidth, a default on these obligations, as well as any other company in the possession
of even a decrease $ 5 million, the official added.

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Posted by Ahmed Tariq on Jun 22 2012. Filed under Pakistan, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry