CCOE inconclusive over approval of Dry Docking of Engro LNG terminal

ISLAMABAD   –  The Cabinet Committee on Energy (CCOE) has once again remained inconclusive over the approval of the Dry Docking of the Engro LNG terminal, however, to cope with the looming energy crisis in country, due to withdrawal of the Terminal, the committee has allowed the Petroleum Division to adhere to load management under the approved priority criteria.

The CCOE that met under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar did not give approval to the withdrawal of LNG terminal, however the committee took up the proposal of the Petroleum Division for curtailing gas supplies in the event of Dry Docking of FSRU of Engro Elengy Terminal. 

The committee discussed two options regarding dry docking. First option was that it should not be allowed for dry docking till August this year. Second option was to approve gas load-shedding management plan to mitigate the crisis in case Engro FSRU was allowed move for dry docking. Regarding dry docking the committee asked SSGC and Engro to hold meeting today (Friday) in Karachi and then come to the CCOE again, said a source. 

Under a gas load management plan, it was proposed that SNGPL may suspend gas supply up to 70 MMCFD RLNG to two LNG based fertiliser plants. Another proposal was to suspend RLNG supply up to 40 MMCFD to the CNG sector in Punjab. Petroleum Division also submitted another proposal to suspend up to 70 MMCFD indigenous gas to the CNG sector in Khyber Pakhtunkhwa. 

It was proposed that SNGPL may use the spread volumes for system balancing and/or diversion to Power Plants, subject to charging of RLNG tariff (where agreement with a power plant for supply of indigenous gas is not available). Another proposal was to suspend RLNG supply up to 115 MMCFD RLNG to the non-export general industry in Punjab and KP. The SNGPL was also proposed to cut the supply of RLNG to K-Electric (KE) and supply of system gas, saved from CNG/Non-export industry, to KE for meeting its demand

The CCOE observed that guidelines in this regard were already available under ECC decisions, which should be adhered to. Adherence to load management plan to cope with the gas shortage in other words means that it is likely allow the Terminal to leave for dry docking, said the source. However another source said the Petroleum Division summary was not related to dry docking and it was related to load management therefore the forum decided regarding the load management and not about dry docking. Secretary petroleum informed the forum regarding the input of the Law Division on the dry docking, but he was asked by the committee that let the member study the report and it would be discussed in the next meeting.

Petroleum Division presented the final report of the committee constituted by CCOE, under the Deputy Chairman Planning Commission to make recommendations for a sustainable LPG supply chain. The CCOE was informed that extensive consultations had been made with all stakeholders before the finalisation of the recommendations. 

The Petroleum Division updated Cabinet Committee on Energy on North-South Gas Pipeline Project, now called Pakistan-Stream Gas Pipeline Project (PSGP). CCOE noted the progress and directed Petroleum Division to expedite actions to ensure that the project was undertaken as per the already specified timeline.

 

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