The Oil and Gas Regulatory Authority (OGRA) had granted the LNG terminal construction license to Engro Vopak Terminal Limited (EVTL) allegedly on an incomplete application, it is learnt reliably.
Official sources on the condition of anonymity revealed to Pakistan Today that OGRA had granted the LNG terminal construction license to Engro Vopak Terminal Limited (EVTL) on 13th June 2014, allegedly on an incomplete application. After obtaining the license, EVTL handed over the development work of the project to ETPL, which is a subsidiary of Engro Corporation. They said the applicant (EVTL) obtained the license without providing the essentially required NOCs, explosive license from chief inspector of explosives department (required for safety clearance) requisite studies, their approval, permission and licenses/consents from concerned ministries and authorities/departments as mentioned in the relevant sections of LNG policy 2011 and LNG Rules 2007. Also, clause No. 19.1 of LNG construction license clearly states that, “The licensee shall have to obtain all the NOCs and approvals from concerned authorities”, sources said.
The sources said LNG Rules, 2007 pertaining to application for a license said, “An application filed under sub-rule (1) shall be accompanied by details of the consents required under applicable laws, from persons other than the authority, for carrying on with the relevant regulated activities.”
The sources also informed that OGRA has still not issued an operational license to M/s ETPL. They said the process to grant LNG construction license was not transparent. They said it is contempt of Supreme Court’s decision in Constitution Petition No.11/2013 and a case of criminal intent under NAB Ordinance. “Under NAB Ordinance even attempt to cause loss in the absence of actual loss is also offense,” said sources.
It is also learnt that M/s ELENGY Terminal Pakistan Limited ETPL) had not complied HSE policy, Hazop study etc prior to submitting the application for issuance of a license with OGRA. Even, PQA’s letter said that M/s ETPL has to undertake further studies including revised ORA for LNGC and FSRU–anchorage to berth and vice versa, Static and Dynamic Mooring Analysis, compatibility study for LNGC with FSRU, maneuverability study, real time simulation studies, etc. Similarly, LNG terminal site is well within the danger zone of 2000m of the port and it is not in line with master plan of Port Qasim Authority (PQA) according to letters of PQA, i.e ETPL LNG terminal is in the chemical zone instead of LNG zone of PQA.
To get official stance of OGRA over the grant of LNG terminal construction license on an incomplete application, a spokesperson of OGRA, after two days’ repeated efforts gave a contradictory statement over the award of LNG terminal construction license to ETPL. For example, he said that ETPL was granted the license by OGRA after the evaluation of its application by a third party (SGS), conducting a public hearing and provision of all relevant documents and NOC’s. However, he admitted that OGRA on 08th April, 10th April, 25th April, 23rd May, 27th May, 02nd June and 11th June 2014 wrote letters to ETPL for provision of NOC’s from MoD (ministry of defence) and PQA to complete the requisite formalities/requirements. ” From March 2014 till June 2014 i.e. from public hearing till license issuance, ETPL was written several times to provide requisite NOC’s,” said Imran Ghaznavi, OGRA spokesperson.
OGRA spokesperson further admitted the resistance of LNG department of OGRA over the grant of license. He said that in a presentation submitted to the authority by the end of March 2014, subsequent to OGRA’s public hearing, the LNG department of OGRA apprised the authority that ETPL must provide the requisite NOC’s. Also, he (the spokesperson) preferred to keep mum over the question pertaining to provision of certain studies, approvals/NOCs by ETPL with its application for issuance of the license.
Interestingly, OGRA spokesperson was asked to tell either of the following: real time simulation studies, HSE policy, Hazop study, Compatibility study for LNGC with FSRU, maneuverability study, revised, ORA for LNGC and FSRU–anchorage to berth and vice versa, Static and Dynamic Mooring Analysis etc required according to LNG Rules or not, however, he preferred not to respond to these necessary requirements as mentioned in the clause 19.1 of LNG construction license. Moreover, LNG terminal is not in line with the master plan of PQA according to the letters of PQA.
Official documents available with this scribe have revealed that the then Executive Director LNG, being the technical and administrative head of the LNG/LPG department of OGRA had submitted a consolidated report to the then Member (Gas) OGRA on March 31, 2014 and stated that the application being incomplete, irregular and void should have been returned as it did not contain essentially required NOCs. The report covered all the technical aspects of the matter in review. However, he was suspended on frivolous and superfluous grounds. “Shahid Nauman Afzal, the then ED, LNG/LPG department was suspended for not agreeing with the Authority’s (Member Gas) verbal instructions to sign and issue construction license to ETPL,” said sources in OGRA on the condition of anonymity.
When contacted with Shamik Ahmed Zaidi, a senior official of ETPL to get official stance of ETPL, said,” Being an operational terminal, we have all the requisite approvals, NOCs and licenses required by the Terminal Developer/ Operator, including an Implementation Agreement with Port Qasim Authority.” However, he admitted that the terminal was designed and developed in line with international LNG codes and Standards and engineering studies, including but not limited to real time simulation studies, maneuverability study, static and dynamic mooring study, ship to ship compatibility analysis etc. According to ETPL, these studies were important to ensure that the terminal was accepted by international LNG giants. Also, the SGS in its report had recommended to OGRA in January 2014 that the application filed by M/s. ETPL, fulfils the requirements of LNG Rules, 2007 and LNG Policy, 2011.
However, it is pertinent to mention here that OGRA has not yet issued an operational license to ETPL, signifying that handling of LNG imports at the ETPL terminal by M/s ETPL is illegal.
