Pakistan Revokes Permits of Three LNG Companies

Pakistan’s Oil and Gas Regulatory Authority (OGRA) has cancelled permits of three companies as they failed to take steps for import and sale of 1,400 mmcfd of LNG.

OGRA cancelled permit of Pakistan Gasport Limited, Global Infrastructure Limited and Elengy Terminal Pakistan Limited to import LNG as they failed to submit a $5 million performance bank guarantee, and did not fulfil six other conditions of the import contract, Kuwait News Agency (KUNA) reported.

"Arguments of the companies for their failure to achieve the milestones and conditions are not tenable and their conditions precedent for progress of the project, including financial close, are hard to be met within next one or two years," said OGRA in a letter to the Ministry of Petroleum and Natural Resources.

The approval by OGRA for the natural gas pipeline capacity allocation to the three companies allowed them to import LNG and transport imported gas through the transmission system of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines (SNGPL).

The organizations were also required to purchase LNG from the local market and construct floating storage and re-gasification unit in Karachi city, but their construction licenses have expired and none of the firms has requested OGRA to extend it, KUNA said.

"They have yet not initiated construction of their terminal, no binding agreement has been signed with any potential consumer and no credible evidence has been provided about build-up of financial resources for the purpose," said section of OGRA's letter related to construction of the terminal.