Tabeer Energy and Energas, were pressing the Port Qasim Authority (PQA) and the government to win waiver from the commitments included in the implementation agreement (IA). Their plans to set up LNG terminals have also been delayed.
Tabeer Energy’s consultant Japan Marine Science said it would address PQA’s concern regarding TEPL’s stance on maintaining the original jetty location.
Tie-in-point coordinates were still awaited from Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) without which TEPL could not ascertain where its project’s off-to-onshore pipeline would end .
Energas said the provisional LOI specified a 25% increase in royalty after every five years. However, PQA has unilaterally amended the structure of royalty.
Energas has called for reverting it.
The new LNG terminal projects are on paper only and are not seeking allocation of pipelines, which is against the spirit of third-party access (TPA) rules. They allow private parties to use the pipeline capacity through a competitive process and first-come-first-served basis.
The Petroleum Division has asked the developers of LNG terminals to sign binding gas transportation agreements (GTAs) that will contain ‘take or pay’ provisions and the clock for financial obligations will start the day they sign these agreements.
Your LOI from PQA requires you to complete your terminal within 24 months of signing the implementation agreement with PQA,” the Petroleum Division said.