ISLAMABAD: The Closet Committee on Energy (CCoE) on Thursday did not quickly permit reduction in port fees on handling of dissolved gas (LNG) required by the Petroleum Division and also got an independent assessment to reach a choice on costs affordable in the area.
At a meeting of the CCoE presided over by Preacher for Planning and Growth Asad Umar, the Oil Department grumbled that Port Qasim Authority (PQA) had been handling costs on LNG vessels that were the greatest in the area and also yet was not spending these funds to improve framework, leading to website traffic blockades.
A Petroleum Department main told Dawn that it had moved a recap to the CCoE suggesting fees that were similar in the area and also needs to not be $2 per gross registered tonnage (GRT) to begin with.
It additionally demanded that about $50 million accumulated on LNG handling should right away be used for widening as well as strengthening of the channel before collecting extra Network Growth Costs (CDC).
It reported that PQA had actually been getting port costs for taking care of imported LNG vessels which are amongst one of the most pricey in the area.
The major parts of the port fees consisted of pilotage, towage, and the CDC.
Pilotage costs stood at $3.7 GRT, besides $100,000 per vessel of CDC. “The complete charges per LNG cargo array from $600,000 to $750,000 which is 300pc greater than the average of other local ports,” the Oil Division stated, adding these charges add to a roughly Rs7 per unit increase in the price of LNG.
It was reported that Pakistan State Oil (PSO) and also Pakistan LNG Ltd (PLL)– the two LNG importers– were of the sight that the CDC was gathered for the very first 200 LNG carriers for channel widening and dredging, yet PQA had actually now connected that it will continue billing the CDC till the total recuperation of its financial investment price. Nonetheless, the financial investment or project price and an update on dredging as well as widening of the channel was not offered by PQA.
The Oil Division claimed a total amount of $47.5 m CDC had been collected till Feb 7, 2021 for infrastructure development at Port Qasim however the flow of LNG vessels in the network continued negatively impacting the motion of the various other ships.
“All traffic in the network stops when an LNG vessel is moving. Due to unavailability of evening navigating, charter price is affected which is eventually mirrored in price of LNG.
Both state-owned PSO and also Pakistan LNG Ltd (PLL) are importing LNG through two LNG regasification terminals of Engro Elengy as well as Pakistan Gasport established with the warranties of the Federal government of Pakistan.
PSO began importing LNG in March 2015 on the very first LNG Terminal of Engro and also has so far imported a total of 359 LNG cargoes.
PLL likewise began importing LNG on the 2nd LNG Terminal of Pakistan Gasport in 2017 and imported a total amount of 136 cargoes.
The Oil Department claimed the PQA had consented to reduce the towage price to $4.199 per GRT from $5.913 on Feb 1, 2017 and also even more to $3.706 per GRT on June 13, 2018, yet did not carry out these prices.
The summary required starting from March 2015 to February 2018, the revised decrease in toll need to be applied for the entire three-year duration both retrospectively and also prospectively.
It required establishing the PQA LNG pilotage and also towage prices at a comparable degree to the prices of ports in the region, reliable from March 2015, and that number should not be greater than $2 per GRT.
Additionally, the PQA must make use of the already gathered CDC for broadening as well as growth of the channel, before accumulating additional CDC as well as an independent assessment ought to be executed for an ideally affordable GRT rate message 2021 when exclusive terminals are likewise most likely to start-up.
The CCoE “approved the proposition to carry out an independent assessment for far better affordable rates” as well as “noted that rationalisation of various fees at the port will profit the end consumers, through reduction in cost of LNG”, claimed a main declaration.
It guided Ministry of Maritime Affairs to right away begin infrastructure advancement work, using the funds readily available with PQA and the preferred improvement in port infrastructure and center need to be the solitary concern of Port Qasim Authority.