Power sector should be allowed to import LNG: UBG Imports through PSO increasing circular debt: Rauf Alam
ISLAMABAD : The United Business Group (UBG) of FPCCI on Sunday asked the government to allow private sector to import LNG which will reduce the intensity of energy crisis in the country.Government could not ink an agreement for import of gas despite the lapse of nine months which continue to unnerve business community, it said.
The global energy mix is shifting towards gas but situation in Pakistan is different where exploration is dissatisfactory while LNG import could not be streamlined, said Chairman North Zone UBG Abdul Rauf Alam.
Speaking to the business community, he said that government is paying 272000 dollars per day to LNG terminal operators while its capacity is not fully utilised. He said that government should admit its weakness and allow private sector to import LNG while preference must be given to power sector otherwise gas shortfall will hit the economy badly. Import through private sector will speed up things, reduce rates and settle allegations of mismanagement kickbacks, he observed.
Abdul Rauf Alam said that we have only one LNG terminal with 600 mmcfd capacity while country needs two more terminals on urgent basis. Currently LNG is being imported through PSO which is creating problems for largest oil retailer while increasing circular debt, he said, adding that establishing new companies for import is not justified in this era of privatization.
He said that PM should take note of the situation and order action against elements hindering LNG project.