ISLAMABAD: Private gas sector investors are perturbed over unremitting hitches to their investment plans for utilisation of surplus processing capacity of LNG (liquefied natural gas) terminals and setting up of new terminals, while the consumers and national economy pay double the LNG re-gasification charges.

About 10 major companies or their associates have complained to the government that their efforts to bring LNG into the system at competitive rates were facing roadblocks and some of them were fed up to pursue their investment plans. These companies include Energas that also has partners like ExxonMobil, Nebras Power, a joint venture of ExxonMobil and Qatar Petroleum, United Gas Development Company (UGDC), and four independent power producers, besides some other private businesses.

This happens despite the fact that the government continues to pay 70-80 cents per unit processing charge to the LNG terminal operator instead of less than 42 cents committed by the Pakistan Gasport Limited, causing about Rs7 billion additional cost to the consumers because of capacity underutilisation…read more

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