ISLAMABAD:
Pakistan GasPort Consortium Restricted (PGPC), a liquefied pure gasoline (LNG) terminal operator, has claimed to have suffered losses of $114.49 million owing to state-run Pakistan LNG Restricted (PLL)’s failure to utilise extra capability of the terminal.
PGPC runs the second LNG terminal in Karachi which has whole dealing with capability of 750 million cubic ft per day (mmcfd). PLL has been allotted a capability of 600 mmcfd. PGPC desires to utilise the surplus LNG dealing with capability of the terminal however no settlement has thus far been reached with PLL. As well as, PLL has been utilizing lower than 50% of the allotted capability.
Now, PGPC has approached the caretaker authorities, requesting it to assist resolve all pending points.
In a presentation to the caretaker vitality minister, PGPC officers stated that after the London Courtroom of Worldwide Arbitration (LCIA)’s ruling of April 26, 2023, which declared the termination discover “void and unlawful”, three disputes have been nonetheless pending between the related events.
One in every of these is said to third-party entry to the terminal’s extra capability. Firm administration stated that below Clause 9.four of the Operation and Providers Settlement (OSA), PGPC had the best to make use of its extra capability for third events and PLL needed to enable PGPC to utilise the surplus capability by executing third-party entry agreements for joint storage and re-gasification of LNG.
PGPC claimed losses of $114.49 million as much as August 2023 from PLL, attributable to non-utilisation of the surplus capability. In response to them, PGPC and PLL had made an association for the utilisation of extra capability, which was additionally authorised by the PLL board, however it was not being applied by PLL.
One other dispute pertained to the reimbursement of Port Qasim Authority (PQA)’s royalty. Beneath the OSA, PLL needed to reimburse the royalty being paid to PQA on LNG imports. PGPC claimed receivables of Rs5.59 billion until July 31, 2023.
PGPC additionally sought restoration of $2.2 million from PLL for the providers offered to the latter, along with the commissioning of cargo.
“We perceive that cost for a similar has been acquired by PLL from its prospects below the Ogra-approved tariff,” PGPC stated.
In an try and resolve the disputes, PGPC, by way of its authorised consultant, proposed a 30% low cost on all claims. Nevertheless, the PLL board rejected the proposal.
No substantial discussions came about between the 2 sides. The preliminary timeline expired on August 3, 2023, which was prolonged twice on the request of PLL. The final extension expired on September 17, 2023.
“PGPC is prepared to resolve the disputes, if a severe counter-offer is acquired from PLL,” the PGPC administration stated within the presentation.
Alternatively, it stated, if the dispute couldn’t be resolved, issues can be referred to LCIA the place each events ought to agree on expedited hearings.
PGPC requested the caretaker authorities to make sure quick implementation of the surplus capability settlement or refer the matter to LCIA for swift listening to.
Revealed in The Specific Tribune, September 27th, 2023.
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