Sindh raises question over LNG import, distribution

KARACHI: Sindh government has criticised the Oil and Gas Regulatory Authority (OGRA) and the ministry of petroleum, suggesting that the entire mechanism regarding import and distribution of liquefied natural gas (LNG) is unconstitutional.

OGRA on Monday held a public hearing pertaining to the determination of tariff for re-gasified liquefied natural gas (RLNG).   

Tariq Ali Shah, Director Energy of Sindh Government, speaking on the occasion said the entire process should have been brought before the council of common interest (CCI) first, adding that Sindh government’s feedback was not sought in this regard.

Shah said the imported supplies were always unreliable and could create a demand supply imbalance in the system.

Representative of Sui Southern Gas Company (SSGC) through a presentation mentioned that the existing pricing formula of RLNG did not cover their costs and revenue requirements and requested revision.

Pakistan State Oil was also not happy with its commission, which stands at 1.8 percent and requested that it should be raised to four percent.

Ghayas Paracha of All Pakistan CNG Association, however, had no objection on the existing pricing formula.

Chairman OGRA Saeed Khan advised the stakeholders to come up with concrete objections supported with documents instead of relying on circumstantial hypothesis.

OGRA would hold another hearing in Lahore on January 04, 2015, after which the prices of RLNG would be determined.

https://www.thenews.com.pk/print/84760-S-Arabia-posts-98bln-deficit