Pakistan News

Private sector, gas firms to sign T&D agreement

ISLAMABAD: The private sector is set to sign an agreement with the Sui Southern Gas Company and Sui Northern Gas Pipelines Ltd next week for the transmission and distribution (T&D) of regasified liquefied natural gas (RLNG) via their networks to Punjab and Sindh

The agreement between the private sector and the gas companies will be signed under the Third Party Access (TPA) Rules 2018 under network code.

The private sector has been pleading the government for a long time to remove bureaucratic and procedural hurdles to utilise imported liquefied natural gas (LNG) for local consumption including CNG sector and power production.

“The Sindh government has announced a plan to curtail the sale of CNG as many other industries face gas shortages during winter due to high demand for heating,” said UGDC CEO Ghiyas Paracha on Saturday.

He added that after the agreement between the private sector importers and the gas companies, relevant stakeholders will be able to import LNG as per their requirements.

Mr Paracha added that discussions were at the advanced stage and issues related to the collection of T&D charges by the SNGPL and the SSGC, gas losses under UFG and matters concerning gas balancing have almost been finalised.

“The delays in the discussion process was because of lack of experience and related expertise. For the first time, gas belonging to the third party would be transported through the SSGC and SNGPL,” Paracha added.

The arrangement will help both the gas utility companies earn additional revenues through transportation charges, while the access capacity of LNG terminals that has been lying idle too would be utilised.

Like UGDC, five other private sector companies have applied for the utilisation of up to 200 mmcfd access capacity at the LNG terminal.

However, Mr Paracha cautioned that the whole system has to be finalised at the earliest because delays in the transmission and distribution agreement could hamper the timely import of LNG for the month of November.

“It takes around 30 to 40 days to complete the whole process from placing orders to receiving the cargo at the consumers’ door,” he said.

Published in Dawn, October 18th, 2020

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