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Lack of decision delays $4bn projects - Naveed Yaseen - 07-22-2009 08:15 AM
By Aftab Maken
ISLAMABAD: Over $4 billion worth of projects of the Ministry of Petroleum and Natural Resources (MPNR) have hit snags mainly because of indecisiveness, lack of administrative control and failure to implement the policy, revealed a communication of the Ministry of Investment to the Ministry of Petroleum on Tuesday.
Liquefied Natural Gas (LNG) project worth $750 million at the Port Qasim Authority (PQA) has not started due to indecisiveness on the part of the petroleum ministry, the document said. “No progress on the LNG project has been made and the country’s chances to get LNG are fast diminishing. This delay will impede efforts to meet the natural gas shortfall,” the ministry observed.
Though the government has short-listed 4Gas for the Mashal LNG import project, the company is still waiting for a letter from the Economic Coordination Committee (ECC) for allowing an engineering study of the project costing $10 million, it added. Besides, multi-million-dollar investments in at least 45 concession agreements throughout the country have been also awaiting the petroleum ministry’s nod since the last two years mainly because of procrastination in the petroleum policy, said the document.
It pointed out that the petroleum ministry has lost two important years in exploration activities at the most crucial time of energy shortfall and now there is no time to lose. “Either the MPNR should immediately put in place the framework for 2009 policy or suspend the policy and sign agreements under the previous petroleum policy,” suggested the document available with The News.
Reko Diq project worth $1.5 to $4.5 billion for mining gold and copper in Balochistan is moving between the petroleum ministry and the government of Balochistan for well over a year, said the document. The Ministry of Investment in its recommendations for the gold and copper mining project urged the MPNR to finalise the agreements on terms which should include all projection and concessions given to investors in other sectors.
Single Point Mooring project of $200 million also in Balochistan has been held up due to vested interest of KPT and PQA for more than three years, the Ministry of Investment suggested that the project should be transferred to Ministry of Petroleum and Natural Resources for a safer and more commercially efficient way to import crude oil into Pakistan using larger ships at less cost per ton.
http://www.thenews.com.pk/daily_detail.asp?id=189233