Monday 31 March 2014

Ogra to deliberate on granting LNG imports licence today

ISLAMABAD: All the members of Oil and Gas Regulatory Authority (Ogra) are set to put their heads together here in Islamabad today (Tuesday) with Saeed Ahmad Khan in the chair to decide if the application of Elengy Terminal Pakistan Limited (ETPL) of Engro Company seeking licence for carrying out LNG import activities and LNG terminal construction should be returned as it is incomplete, irregular and void.

The authority would also decide as to whether the interveners should also be provided with complete application or not.Ogra Chairman Saeed Khan confirmed to The News that the authority will assemble today (Tuesday) and examine the LNG project for which a working paper is being made.

“We will decide the fate of the licence keeping in view provisions of Ogra Ordinance and LNG policy,” member oil and vice chairman of Ogra told The News.The regulator has already held a public hearing in Karachi on March 25 wherein 6 interveners came up with their reservation about the site of the proposed LNG terminals.

The Ogra also visited the site of the proposed LNG terminal at Port Qasim in Karchi. The working paper to be pitched before all the members of the Ogra, available with The News, unveils that the authority will ponder over some vital points like the proposed LNG terminal is well within the danger zone of 2000m. Asked is proposed terminal in line with master plan of Port Qasim Authority?, the PQA replied in a letters in the negative.

The authority will assess, as per the working paper, as to why it was essential to have separate LNG zone and why has not Ministry of Defence insisted on it?

The authority will also deliberate on the development according to which ETPL was directed by PQA to shift their project to LNG zone and is PQA now changing its stance? Ogra members will also discuss as to whether the fresh studies are required for the site which should be in LNG zone.

The PQA has not yet cleared the proposed site and will certainly not issue unconditional NoC given so many deficiencies with the applicant.The working paper also discloses that hydraulic and traffic studies are required before the issue of PQA NoC and they have not been provided to Ogra by the applicant. Environment concerns have yet to be addressed by the applicant.

The paper also says that the proposed Elengy site would need extremely large volumes of dredging which shall disturb the seabed geography and shall give rise to variable currents emerging with totally silting patterns. This may result in reduction of designed existing depths at FAP terminal leading to server commercial and financial losses.

The working paper that OGRA will deliberate also mentions that the transition of LNG vessels in PQA will render the channel suspended for other commercial traffic and port users.

EVTL CEO Imranul haq when contacted responded in detail saying that there is no requirement of 2000 meters distance that has been dubbed danger zone as in Argentina port, various terminals including LNG terminals have been established at a distance of 200 to 300 meters.

Haq said that no doubt the master plan of PQA does not include the LNG terminal in it. He, however, further said that FAP terminal was also not included in the master plan. In case of any untoward incident, there are three levels of security embedded in the security apparatus and even in case of any worst scenario, the explosion will take place in burning basin only that will not affect the terminal and others.

Haq said that master plans keep on changing keeping in view the requirements. Asked as to whether Ministry of Defence has given Elengy a green signal for LNG terminal at Port Qasim, he said that Elengy cannot approach the ministry directly as it is the duty of Port Qasim administration. However, he mentioned that in a meeting of the task force on LNG, representatives of the Ministry of Defense had indicated that it has no objection and when the application comes to the ministry, it will issue the NoC to Elengy for LNG project.

About hydraulic and traffic study, he said that it is not the duty of Elengy, rather it is duty of Port Qasim Authority. He, however, said that there is no need of hydraulic study as it is done for new port, but for Elengy, there is already a jetty which will be used. So Elengy needs not conduct the study, he said. About the traffic study, he said that the traffic of ships has reduced over the year and in Port Qasim about 35-42 LNG vessel will enter in one year. He also said that the port needs to enhance its capacity to handle the traffic in channel.


 

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