Sui Southern Gas Company (SSGC) and Fatima Group have a dispute for high trolling charges liquefied natural gas (LNG) imports of and not willing to send imported gas until unresolved payments are settled from fertilizer manufacturer.
Meeting held last month resolving dispute in Fatima Group criticized issues with Sui gas companies affecting to LNG imports and handling fee not resolved and they demanded a cordial solution.
Managing director of SSGC contended that Fatima Fertilizer fell in Sui Northern Gas Pipelines Limited (SNGPL)’s authority and deal with the LNG load organized by a fertilizer company.
He said SSGC had effectively paid the terminal charges endorsed and informed by the Oil and Gas Regulatory Authority (Ogra) to Elengy Terminal Pakistan Limited (ETPL) as to re-gasification charges, that gets and re-gasifies LNG at terminal at Port Qasim.
He underscored that extraordinary installment of about Rs2 billion incorporating Rs1.3 billion in genuine expense and Rs667 million in late installment and settled added charge, SSGC would not able to transport gas for Fatima Fertilizer.
A delegate of the Fatima Group contradicted that SSGC had singularly developed extraordinary sum and late installment added charge did not concur.
He stressed that the Fatima Group was ready to pay Rs978 million based on the old fee of $0.66 per mmbtu.
He said in re-gasification expense they had paid $0.66 per million British warm units (mmbtu), yet after an overhauled Ogra notice, SSGC charged an additional sum of $1.43 per mmbtu that was not acceptable,” he said.
He focused that Fatima Group prepared to pay Rs978 million as an old charge of $0.66 per mmbtu.
But SSGC managing director said the Fatima Group expected to pay notified charge as per Ogra.
It was asked during the meeting, that some term sheet or agreement was signed by SSGC and Fatima Fertilizer before processing LNG imports.
The MD said they had paid terminal charges at actual ETPL fee and Fatima Group needed to pay the same.
It was proposed amid the meeting that past issues ought not to influence future ventures and a standby letter of credit could be gotten from Fatima Fertilizer to cover future re-gasification charges.
Nevertheless, SSGC managing director said they could not continue to promote unless pending charge was cleared by the Fatima Group.
SSGC representative concurred reacting to the demand for remarks that there was an argument about installment of re-gasification charges as the Fatima Group paid $0.66 per mmbtu though they needed to pay genuine charges as informed by Ogra.
“SSGC management is in contact with the Fatima Group and the Ministry of Energy (Petroleum Division) is likewise assuming part to determine the issue. SSGC will send their future cargoes once they think of a solid installment design and give security (standby letter of credit) for future cargoes,” the representative said.