The Ministry of Energy has blamed an LNG terminal operator for installing an old Floating Storage and Regasification Unit (FSRU) on a new terminal, which has been damaged and has to be shut down for seven days.
In a statement, the Ministry of Energy said that a used FSRU was installed by the previous government in March 2015. It was developed in 2009 and was installed in Pakistan after overhauling. A new FSRU needs to be overhauled twice in 15 years. When experts came to Pakistan for the Engro terminal in March 2021 and inspected the FSRU of the terminal, they declared it unsuitable in Pakistan. The real damage came from installing the old FSRU on the new terminal, which has now to be shut down for seven days.
The Ministry of Energy said 70 per cent of the country’s liquefied natural gas (LNG) imports are due to the previous government’s 15-year expensive contracts. Only 30pc of the gas can be taken at the spot, whose prices fluctuate regularly in the international market. “Therefore, it is not correct to say that the present government is buying expensive gas because 70pc of it is the same gas that is coming due to the long-term agreements of the past government,” it said.
Sui Northern Gas Pipelines Limited (SNGPL) has recently announced the suspension of gas supply to CNG, cement and fertiliser plants following shutdown of the Engro LNG terminal. Power outages also started on Tuesday following the suspension of LNG supply due to dry-docking of Engro FSRU. The Ministry of Energy said that it was an old FSRU that Engro had installed on a new terminal. Therefore, it resulted in the shutdown.
MoE further said that if some power plants are currently running on the furnace oil and diesel, it is because of the severe water shortage in Tarbela this year, which has led to an electricity shortfall of 3,500 MW.
On June 28, Sui Northern Gas Pipeline Limited (SNGPL), in a memorandum, announced to suspend gas supply to CNG, cement, and fertilizer plants owing to dry dock activities at Engro LNG Terminal from June 29 till July 5.
Power outages started on Tuesday following the suspension of LNG supply due to dry-docking of Engro FSRU. The Ministry of Energy said that it was an old FSRU that Engro had installed on a new terminal. Therefore, it resulted in the shutdown.