KARACHI: The Cabinet Committee on Energy (CCoE) on Thursday failed to develop a consensus on allowing Engro to replace the existing LNG terminal for dry docking.
The cabinet body on energy took up the matter once again. However, it could not take any decision in this regard owing to the SNGPL’s observations regarding the gas crisis and financial obligations. The SNGPL had conveyed that it had agreements with power plants and therefore, it would have to face damages if it fails to provide gas for electricity generation.
Sources said that the Petroleum division had also informed that the entire burden would pass on Pakistan State Oil (PSO) to provide furnace oil. The oil company had already floated a tender for furnace oil import but it had to cancel it due to a higher price of Rs 120,000 metric tons.
Petroleum Division had tabled two options before cabinet body on energy whether to allow Engro to replace its LNG FSRU or approve gas load management plan. However, the cabinet body on energy noted that there would be a severe energy crisis if it allows Engro to replace FSRU.
It was the responsibility of Engro to replace FSRU in March 2021 as the demand for gas remained low at that time. However, it delayed that resulted in crisis now.