ECC declines approval for SSGC project

Islamabad: The Economic Co-ordination Committee (ECC) of the Cabinet has declined approval to Sui Southern Gas Company's (SSGC) liquefied natural gas (LNG) import project, and has asked the Ministry of Petroleum and Natural Resources (MP&NR) to take Port Qasim Authority (PQA) on board by incorporating its suggestions before coming back for clearance of the proposal.

Sources said that PQA had opposed setting up of a terminal by SSGC at its port for handling and transporting LNG, after import, to other parts of the country. PQA informed the ECC that it was willing to set up a terminal at the port, from its own resources, for facilitating parties for import of LNG to meet the growing gas need of the country. PQA probably feels that setting up of a terminal by SSGC for import and handling LNG would deprive it of 'rightful income', and if it comes up with such a project from its own resources then it could generate substantial revenue from the project.

MP&NR had submitted SSGC's proposal to ECC in its last meeting. It informed the committee that SSGC was willing to take up a big project in the form of setting up a terminal at Qasim Port for LNG import. It told the committee that SSGC has already formed a consortium, with some foreign reputed company, for setting up a state-of-the-art terminal at Port Qasim to import LNG to supplement the already available gas resources.

It also informed ECC that LNG import would not only ease the pressure on SSGC and SNGPL, the two gas distribution companies, but would also help the government provide gas to those areas where these distribution companies are not having their network right now.

A number of proposals have been under study for a long time for import of LNG to plug the deficit in gas demand and supply, but due to infighting of different government and sometimes public and private sector parties which showed interest in investing to set up a terminal at Qasim Port none of them could mature. PQA's objections to SSGC's project may result in dumping of the project, for which the latter has not only invested time and money but also formed a consortium with some foreign company for bringing in investment for setting up the terminal at Port Qasim.

Pakistan badly needs any source for import of gas. No matter who brings this comparatively cheaper fuel and what could be the source, all what is needed at this point in time when Pakistan is facing huge shortfall in gas supply and demand, the government departments instead infighting should let the serious party come in and do something to have an additional source of gas supply.