ISLAMABAD – LNG Floating Terminal, at Port Qasim, could start functioning if the Ministry of Petroleum and Natural Resources assures uninterrupted supply of Liquefied Natural Gas (LNG), the Senate’s Standing Committee on Ports and Shipping was told on Saturday. “We are ready and it is up to the Ministry of Petroleum and Natural Resources to assure supply of LNG,” Port Qasim Authority (PQA) Chairman Vice Admiral Muhammad Shafi told the committee.
Ministry of Ports and Shipping Secretary Muhammad Saleem Khan said that the terminal was unable to function as the Ministry of Petroleum and Natural Resources, on request of Sui Southern Gas Company, had stopped LNG import. He also added that the import of LNG had been approved by the cabinet following discussion at the Economic Coordination Committee (ECC).
An aggrieved party went to the court against the decision and the matter was again referred to the ECC, which ultimately sent it to the Ministry of Law, the secretary said. He added that the Ministry of Law had scrapped the project and asked for fresh tendering. PQA Chairman Muhammad Shafi further said that the PQA had eight ongoing projects including Coal and Clinker Terminal, Second Oil Terminal and development of infrastructure in industrial zones.
He also said that Coal and Clinker terminal would cost around $116 to 173 million and would have an annual cargo capacity of eight million tonnes. The second oil terminal project, possessing handling capacity of 75,000 vessels per annum, would cost $52 million. Muhammad Shafi also added that PQA had three additional projects; Liquid Cargo Terminal, Grain and Fertiliser Terminal and Second Container Terminal, which would be completed within the next two years.
Answering a question of Senator Ismail Bulaidi, the PQA chairman said that development of infrastructure in industrial zones includes construction of 55km roads and 82km water and sewerage drains along roads. He also informed the committee that a dual carriageway would also be constructed by PQA and would incur a cost of Rs 4.0 billion. It would provide access from the port’s operational areas to National Highway for growing cargo traffic, Shafi added.
He said that the project included a 14km road construction with fly-overs. Muhammad Shafi also informed the committee that PQA had funds of over Rs 20 billion and provided jobs to 400 people in the last three years. Expressing concern over destruction of road infrastructure caused by NATO and ISAF containers, Senator Tariq Azim said that the Ministry of Ports and Shipping should levy a tax on the usage of Pakistani roads by NATO or ISAF containers.
“Around Rs 50 to 75 will be needed for rehabilitation of roads, destroyed by movement of NATO or ISAF containers,” the senator said. Ports and Shipping Secretary said his ministry could not do so as it fell outside its jurisdiction but Pakistan was paid some amount in this regard. The committee, in its next meeting, called Secretary Finance, Secretary Petroleum and Natural Resources and FBR chairman to discuss the issue of LNG import.
LNG terminal hangs on as Petroleum Ministry stops LNG import
