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Fee payment row impedes start of operations at second LNG terminal

By News Desk - October 20, 2017

As fee payment row rages on between Fatima Fertilizer and Sui Southern Gas Company (SSGC), Pakistan LNG Terminal Limited is mulling the option of diverting gas imports from Qatar to second LNG terminal, said an official.

The second LNG terminal is said to be complete, but Pakistan LNG Terminal Limited has failed to incorporate a mechanism for handling the start of gas imports, reported Express Tribune.

As per the official, Fatima Fertilizer is willing to receive first LNG cargo at the new terminal, but argument persists over payment of tolling fee. A levelized tariff of $0.66 per million British thermal units (mmbtu) has been paid by Fatima Fertilizer, but according to SSGC it is required to pay $1.45 per mmbtu as per an accord approved by regulator.

Due to this controversy, SSGC isn’t willing to permit Fatima Fertilizer to bring and unload cargo at the second LNG terminal. To kickstart the operations at the second LNG terminal, Pakistan LNG Terminal is putting undue pressure on Pakistan State Oil (PSO) to divert its one LNG cargo there.

According to MD PSO, Qatargas needed to carry out a due diligence to ascertain compatibility and risk analysis and added issues like additional cost also needed to be tackled.

Sui Northern Gas Pipelines MD recommended instead of diverting LNG cargo, Pakistan LNG Terminal should opt for an independent arrangement for starting work at the terminal instead.

source: pakistantoday.com.pk

ICAP accords PSO number 1 rank in its list of top 100 companies

By News Desk - October 19, 2017

Institute of Chartered Accounts of Pakistan (ICAP) has selected Pakistan State Oil (PSO) as the number one company in its top list of 100 corporations of Pakistan.

PSO was accorded this rank based on ICAP’s criteria in the category of ‘Revenue wise Top Performing Companies’. It has reported 21.1pc higher earnings of Rs1,097b during financial year 2017 in comparison to Rs906b in FY 2016.

Despite PSO facing a severe liquidity crunch, it has continued the path of progress despite all the financial challenges it has faced.

According to MD and CEO of PSO, Sheikh Imran-ul-Haque this award is a remarkable achievement and is testimony to the company’s tireless efforts towards serving Pakistan.

Furthermore, he stated “For the management of PSO, our top business ranking comes with a great deal of responsibility, as demonstrated in recently again during events of fuel shortages in the country.

Engro in collaboration with Shell, Fatima plans constructing LNG terminal at Port Qasim

Engro Elengy Terminal Limited (EETL), in collaboration with Shell and Fatima Group, plans to construct another terminal at Port Qasim with a capacity to regasify up to 600 mmscfd.

Also, with the supply of RLNG, Pakistan is saving about USD 1.7 billion each year due to fuel arbitrage savings between diesel and LNG alone. Additionally, Engro is one of just fifteen companies in the world, which is operating such an advanced terminal storage and regasification technology that enables such efficiencies.