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New terminal to hike gas tariff, hit masses, production and exports: Shahid Rasheed Butt

Islamabad, May 10, 2016 (PPI-OT): Chamber of Small Traders on Tuesday criticised the decision of the government to establish another LNG terminal to feed powerhouses of Punjab as it will result in colossal losses to the public exchequer.

Construction of second LNG terminal with 600 mmcfd capacity should be delayed until the completion of LNG pipeline from Karachi to Lahore otherwise it will remain counterproductive, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

He said that the second LNG terminal will be completed in eleven months like the first one while upgradation of gas infrastructure including laying new 42 inch diameter pipeline cannot be completed before 2018.

The first terminal has capacity to process 600 mmcfd fuel while the pipelines cannot transport more than 400 mmcfd resulting in underutilisation and penalty to the tune of billions, he added.

Shahid Rasheed Butt said that after completion of second terminal both the terminals will be able to process 1200 mmcfd LNG which will be three time that of transportation capacity of pipelines.

Masses will have to pay for the wrong planning of policymakers as second terminal will remain idle after completion and burden of penalty will be transferred to masses as usual, he noted.

He said that it is standard operating procedure that governments find customer, bind customers in contracts, ensure transportation of gas, and then terminal is constructed before import of gas but in Pakistan that rule was violated resulting in losses.

The second terminal will result in increased tariff of gas which will make life difficult for masses, hit industrial and agricultural production and make exports uncompetitive, he warned.

For more information, contact:
Jahangir Akhtar
Secretary General
Islamabad Chamber of Small Traders and Small Industry
Office No, 9 Block E, Super Market, Islamabad
Cell: 0344-5111174

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