ISLAMABAD: Delays in procurement and earlier commissioning of second Liquefied Natural Gas terminal built by Pakistan GasPort Limited (PGPL), which resulted in various penalties from Pakistan LNG Terminal Limited (PLTL) have raised a hue and cry in government circles.
Managing Director, PLTL Azam Sufi had imposed a fine of $10 million on PGPL for recurring delays in commissioning of 2nd LNG terminal beyond its revised deadline, reported Dawn.
PLTL which comes under jurisdiction of Petroleum Division, had earlier penalized PGPL $30 million for not brining the terminal online in June as per commitment.
PGPL had challenged the fine and it is currently under adjudication. These fines imposed on PGPL has earned the ire of Prime Minister Shahid Khaqan Abbasi, who has publicly voiced his opposition against this penalty.
According to sources, Mr. Sufi was called to visit Prime Minister Secretariat and directed to take-back the penalty or submit his resignation. He refused to cede to both requests and stated he was unwilling to face the accountability process and would keep operating under the rules unless told in writing by the relevant authorities.
On Tuesday, it was said PLTL’s board of directors had demanded the removal of MD Sufi, but disagreement rose among the member ranks over its legality.
These penalties were imposed by PLTL after PGPL failed to commission the terminal by November 28 as per agreement. Besides, the terminal developed multiple problems as its three joints collapsed on December 2nd, 8th and 10th because of gas pressure build-up.
Shipments were delayed due to suspension of operations at PGPL’s terminal and got diverted, while two other orders were delayed.
An official said PGPL is supposed to pay $300,000 for commissioning delay of 2nd LNG terminal as per the agreement and PM Abbasi could direct this penalty to be suspended.
