ISLAMABAD: The Pakistan National Shipping Corporation (PNSC) is likely to lose business of billions of rupees for being out of import of Liquefied Natural Gas (LNG) for not having the required capacity.
In September with the an objective to keep the Compressed Natural Gas (CNG) stations running seven days a week, Economic Coordination Committee (ECC) of the Cabinet approved in principle the import of Liquefied Natural Gas (LNG) for the troubled CNG sector of the country. LNG imports will cost Pakistan $2.25 billion a year translating into $ 16 per mmbtu. Last month, the ECC approved incentives for use of imported liquefied natural gas (LNG).
“Currently, PNSC is managing a fleet of eight vessels; Aframax Tankers three and Bulk Carriers five with total capacity of handling weight of576,491 tonnes. Bulk carriers are operating from all continents carrying iron ore, coal, grains, other bulk minerals, timbers, fertilizers and other finished products,” a well placed source at Ministry of Ports and Shipping told this scribe here on Friday.
The source said that a large number of merchant ships were designed and constructed for carrying different types of liquefied gases from one port to another. Since cargo in gaseous form will take much more volume than when in liquid condition, the gases are condensed and liquefied for carrying them in ships. Moreover the source said that LNG with removed component of sulphur and carbon dioxide was carried in LNG carrier ship and transported in the form of liquefied methane after cooling it to its boiling point, 163 C. “As per regulatory requirements for the LNG transportation under International Maritime Organization, a liquefied gas ship can only run in international waters if it is constructed and operated as per International Gas Carrier (IGC) 1986 code,” the source revealed.
The source said that LNG transporting ships required some special specifications like damage limitations to cargo and ship survival in case of collision or grounding, safety arrangement requirements for such ship, cargo containment and cargo handling procedure, material of construction for containment and carriage facility, requirements for cargo loading and discharging, fire protection requirements, pollution control requirements. “Similarly, LNG is carried at very low temperature which can cause crack in the metal structure if cargo comes in contact with the ship’s hull. Moreover, LNG carrier must have a cargo tank with double layer of insulation protection. Material used for tank must have very low coefficient of thermal expansion (invar),” the sourced observed.
“Actually, neither any of PNSC ship or vessel is equipped with required specifications nor PNSC seems having any intention to purchase any such ship to meet the set criteria” the source added saying that this state of affairs would not only cost billions of dollars to the national exchequer in the form of LNG transportation charges as well as PNSC would lose business at the same time. It is pertinent to mention here that in June this year PNSC approached Prime Minister Nawaz Sharif to change LNG policy to get a little bit share out of its import but without having required ships.
Moreover, Engro Elengy Terminal is likely to be ready to receive liquefied natural gas (LNG) consignments at Karachi’s Port Qasim by the end of first month of next year as Vital works related to LNG infrastructure including the 14.5-metre deep dredging of the channel, erecting pillars for the jetty, construction of pipelines and basic engineering has been completed.
