Gas terminal: PQA refuses LNG licence to two importers

Sources said that EVTL and FOTCO were pressurising PQA top management to obtain the approval. PHOTO: FILE

ISLAMABAD: 

The Port Qasim Authority (PQA) has refused to grant a No Objection Certificate (NOC) to Fauji Oil Terminal and Distribution Company Limited (Fotco) and Engro Vopak Terminal Limited (EVTL) to use its jetties for handling liquid natural gas (LNG) imports in its main channel, saying that it could be very dangerous and hazardous for the port, the surrounding industrial installations and population.

According to letters written by PQA to Fotco and EVTL, copies of which are available with The Express Tribune, Fotco and EVTL had requested PQA to provide NOCs for use of their existing jetties for handling LNG imports in PQA’s main channel.

Although PQA had refused to issue NOCs for use of its main channel in August 2012, Fotco and EVTL are pressing the authority to allow them to use the existing channels. PQA, in its letter written on October 8, said that it could not change its stance as the LNG Policy stressed to ensure all international safety standards are met, and the widening of the channel near the FOTCO terminal will not achieve minimum recommended safe passage as per international safety standards mentioned in the LNG Policy 2011. PQA further said that it would block its expansion master plan of additional berthing and basin area.

PQA informed EVTL that any potential release of large gas quantities under the prevailing wind conditions is likely to have a potential impact on the adjacent facilities. The authority has also advised the EVTL management to ensure compliance to all international safety standards.

Sources said that EVTL and FOTCO were pressurising PQA top management to obtain the approval. PQA has refused to give NOCs as these jetties, if used for such operations, could potentially risk the safety of the Port itself, exiting jetties and terminals, surroundings and neighboring properties and population.

“It will be in gross violation of the safety criteria laid down in international safety codes and standards if permission is grants for use of main channel,” sources added.

“If PQA is made to succumb to pressure and forced to allow handling of LNG in these terminals/jetties, it could result in a major disaster down the line,” sources said adding that there are very stringent requirements, standards and practices laid down in various international protocols for LNG terminals, ports and traffic management.

CEO EVTL, Imran Sheikh, confirmed the receipt of letter and said that they had submitted a report by a consultant to the PQA to examine. He said PQA had given an NOC for existing terminals. He said that they would follow international safety standards while handling LNG imports.

Fotco official could not be reached for comments.