Staff Report
ISLAMABAD:
Country has been bearing losses because of installing an old Floating, Storage and Re-gasification Unit (FSRU) by the Engro on a new terminal.
The Ministry of Energy (MoE) has blamed Engro Elengy Terminal Private Limited (EETPL) for installing an old Floating, Storage and Re-gasification Unit (FSRU) on a new terminal that has caused losses.
MoE on Tuesday leveled the allegation on Engro for installing old FSRU on a new terminal, saying Engro had installed the old FSRU on the new terminal causing a shutdown for seven days now.
Energy Ministry, in a statement, said that the old/used FSRU was installed in the previous government in March 2015. This FSRU was developed in 2009 and was installed in Pakistan after over hauling. The new FSRU requires two times overhauling in 15 years period.
According to MoE, foreign experts had visited Pakistan for the inspection of Engro terminal in March 2021. These experts inspected the Engro’s FSRU and they declared this FSRU irreparable in Pakistan.
“The real damage surfaced due to installing an old FSRU on the new terminal, which is now going shut down for seven days.
Ministry of Energy also said that 70 per cent of the country’s LNG imports are due to the previous government’s 15-year expensive contracts. While only 30% of the gas can be taken at the spot, whose prices fluctuate in the international market regularly. Therefore, it is not correct to say that the present government is buying expensive gas because 70% of it (LNG) is the same gas that is being supplied to the country because of the long-term agreements of the accusers.
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 28th June 2021, Sui Northern Gas Pipeline Limited (SNGAPL), in a memorandum, has announced to suspend gas supply to CNG, cement, and fertilizer plants owing to dry dock activities at Engro LNG Terminal from 29th June 2021 till 5th July 2021.
