STAFF REPORT IBD: The laid down procedure on the May 2011 LNG project valued at over $2 billion is being changed midway. Earlier, the Ministry of Petroleum and Natural Resources and Oil and Gas Regulatory Authority had not only finalised the project, but also provided the capacity allocations to the three companies for importing LNG, source have said.
The project includes investment from private companies and gas utilities – $160 million from Pakistan Gasport Limited, $200 million from Global Infrastructure Energy Limited (GIE), $160 million from Engro Corporation Limited and $1.5 billion by both Sui Northern and Sui Southern gas companies.
According to the document, Ogra has opposed the slashing of the performance guarantee by 50 per cent. The Secretary Ministry of Petroleum took the decision, which may lead to the end of the project due to the midway changes in rules and regulations.
“We will never accept the changing of rules of business midway as it would make the project dubious,” Fasih Ahmad, Director of Pakistan Gasport Limited, remarked over the issue.
The new decision to reduce the amount of guarantees to $15 million will increase the financial vows for both gas utilities in materializing the capacity enhancement project.