ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has showed concerns over unsatisfactory operational parameters for Qatar’s ships at Port Qasim under international standards for the import of liquefied natural gas (LNG).
The committee’s meeting, presided over by Finance Minister Ishaq Dar, pointed out that the port’s authorities are required to follow international standards in this regard.
According to an official statement, issued by the Ministry of Finance, has also confirmed regularisation of temporary arrangements.
The meeting issued temporary pricing mechanism of LNG for three months until a formal supply agreement is signed with Qatar. It also allowed Pakistan State Oil (PSO) to induct private sector ships for import of petrol and Low Sulphur Fuel Oil (LSFO), leaving state-run Pakistan National Shipping Corporation to provide shipping service only for High Sulphur Furnace Oil (HSFO).
The ECC decided that PSO being a corporate entity may decide on the issue of buying LNG on FoB basis till finalisation of LNG supply agreement with Qatar, said an official statement.
The ECC also approved pricing parameter for RLNG which includes PSO margin (up to 4 per cent) and SNGPL / SSGCL administrative margin (up to $0.05/mmbtu), subject to review after three months by a committee, consisting of secretaries of finance, petroleum, water and power and law.
On the request of Ministry of Petroleum and Natural Resources for fast-track LNG import terminal, LNG Services, Storage and Re-gasification by EETPL at Port Qasim, the ECC also allowed PQA to follow the SIGTTO Standards or to decide on its own technical parameters for berthing of LNG ships and vessels, the official statement said.
Following a long-drawn dispute between PNSC and PSO over shipping charges that was also one of the major reasons behind petrol crisis in January and that resulted in the cancellation of another shipment in recent weeks, the ECC accepted the PSO request to engage private sector ships of international shipping line for arranging petroleum products.
