ISLAMABAD: The federal government has yet to sign any agreement for import of liquefied natural gas (LNG) with any company and, in penalty, it will have to pay $272,000 per day to Engro from March 31, 2015 as the company’s $135 million LNG terminal is ready handle imported gas, said a statement issued by Engro Elengy Terminal Limited (ETPL) – a subsidiary of Engro Corporation.
ETPL CEO Shaikh Imran-ul-Haq said that the terminal has been completed in a record time and now the company is waiting for the government to finalise LNG procurement deal, adding. “If the commodity is not delivered by March 31, 2015, the government would be liable to pay the capacity charges.”
The FSRU Exquisite, the floating storage and re-gasification vessel is anchored at Dubai Dry docks and will be ready to make sail by March 15, 2015.
The company said that as per the agreement, the government will have to pay $272,000 per day for not importing the LNG by March 31. The government has so far virtually failed to ink an LNG deal with any country, including Qatar.
According to Engro, international dealers were hesitant to supply LNG to Pakistan for power sector, which is virtually hit by circular debt and Independent Power Producers (IPPs) were not willing to make an agreement with LNG supply for back-to-back letters of credit.
