SSGC Board rejects Engro’s offer of LNG terminal installation

Sui Southern Board has rejected the offer made to it by Engro for the installation of a Liquefied Natural Gas (LNG) terminal, reported 24NewsHD TV channel on Saturday.

Sources in Sui Southern Gas Company (SSGC) have told the channel that despite the fact that the company would have received 120 MMCF of additional gas if it had accepted the offer but ‘stringent’ conditions laid down by the Engro led to the rejection of the offer.

SSGC has written a letter to the Ministry of Energy and other concerned departments, seeking directives. In the letter, it has also expressed the fear that the National Accountability Bureau (NAB) could file a reference.

The letter further reads that so far Pakistan State Oil (PSO) and Sui Northern Gas Pipeline Limited (SNGPL) have not made their stance clear on the issue. There is an emphasis in the letter on compliance with the PEPRA rules.

SSGC argues that there should be a right to accept or reject under sections 8.5.5 of the LSA in case of excessive or less use of gas. “And since the NAB may intervene, it is requested that the Board’s approval is sought and the matter be taken up at the meeting of CCOE,” the letter adds.

Reporter Ashraf Khan