Terminal Drydocking: Inquiry Body raises 29 questions

Aftab Ahmed

Islamabad: An Inquiry Committee formed by the Cabinet Committee on Energy (CCoE) has sent 29 questions to the Ministry of Energy regarding the dry docking of the Engro LNG terminal at the port Qasim in Karachi that pushed the country into blackouts.

Finance Minister Shaukat Tarin had raised the issue of dry docking in CCoE and called for holding an inquiry against the responsible for mismanagement and a delay of LNG terminal drydocking at the port Qasim in Pakistan.

Tarin had said that someone was trying to fix the government.

In questions, the CCoE inquiry committee had raised questions on the role of the Energy Minister, secretary petroleum, gas companies, and Engro.

Questions regarding LNG terminal at Port Qasim

1. When was the first time Engro EETPL (or Its FSRU supplier Excelerate) notified MOE that it wanted to replace the FSRU?
2. Under the agreements with Engro, who is the counterparty that Engro coordinates with, from a contractual point of view, and from an operational point of view?
3. Did MOE ever formally request to delay the dry docking, and if so, why?
4. Why was FSRU not sent for dry docking in 2020, if it was not MOE asking them to delay?
5. When did the MOE Petroleum division find out about dry docking planning at the end of June 2021?
6. Once MOE Petroleum division found about drydocking at this time, what actions did it take?
7. Who makes the decisions and arrangements relating to gas, LNG, and RFO supplies to the power sector?
8. When was the power division informed about dry docking taking place by 30 June 2021?
9. Who deals with policy matters related to Gas/LNG in the petroleum division (chain)?

10.ls SEQUOIA taken as alternate or bridging ship what are the protocols and procedures of commissioning an alternate ship and if, for some reason, it is not sailing back and replaced by dry-docked ship Exquisite how much time is needed to perform requisite inspections, what will be arrangements to check any other pause in the supply chain of LNG?

11. What is the chain of correspondence from terminals to MoE?

12.Is there any provision of increasing output of local gas fields has it ever happened in past?

13.Who manages and operates gas fields Kunner Psaki and Qadir Pur?

14.Who does contingency planning of LNG/RFO, LSFO when were all fuels calculated who supervised that, when was last coordination meeting of fuel calculations took place who chaired that, were fuel stocks at KAPCO, MUZZAFARGARG, JAMSHORO and HUBCO complete for summer peak season (June, July)?

15.Submit data of all refineries Production, inventory, and Sale from April 2020 to June 2021.

16. When did the power division submit their demand to Petroleum Division for GAS/LNG and RFO for power generation?

17.When did present Secretary Petroleum and SAPM petroleum took charge of their positions?

18.When did the petroleum division first time formally received the 30 June 2021 deadline date for dry docking and from whom, when did SAPM, Secretary Petroleum, and additional Secretary Petroleum receive information, and what sequence of actions were taken?

19.When was the summary for TPA approved by the cabinet why has it not being implemented so far, what are the hindrances why is the private sector struggling to utilize government unutilized capacity and available capacity in the existing terminal.

Had magnitude of crisis lower than it happened, if MoE had timely allowed private LNG import.

20.How many times dry docking was postponed what were the reasons, were those based on facts or assumptions, what efforts were made since EETPL’s first correspondence with Petroleum Division/SSGCL on 23/1/19 to ensure dry docking to take place at a point of time that suit government interest.

Read More: MoE blames Engro for installing old FSRU

21.When was the MOE-Power Division officially informed by MOE-Petroleum Division that dry dock will result in a drastic reduction of RLNG supply to the Power sector?

22.What did the MOE-Petroleum Division do as contingency planning to keep supplying necessary fuels to the Power Division at peak generation time during dry-docking.

Read More: Dry-docking: SSGC hits back at CEO Engro for Misleading

23.SAPM for Power and Petroleum is the same was he coordinating among both divisions on this issue of dry docking, was it in writing or verbally provide a record of meetings including attendance. When was it realized that dry docking will create a crisis situation for energy, industry, fertilizer, and CNG was it avoidable?

24. Had PSO ever informed Petroleum Division regarding any shortage of Furnace oil during June and July 2021 if yes when to whom and how to provide a record?

25. Who decides to divert or reschedule any LNG cargo if needed what is the procedure?
26. Is there any mechanism to ensure the purchase of LNG at cheaper rates, who ensures and overlooks this aspect, if yes then why spot buying by PLL and PSO at short notices and extremely higher rates is not checked which ultimately is adding to circular debt?
27. As per agreement clause 13.3.2, it is the customer prerogative to agree to change in the annual program, who decides and approve this, why was it agreed in this case if not then who forced to allow dry docking despite so many contractual

violations, will loss occurred to national exchequer be recovered from operator EETPL?

28. Violation of contractual clause 13.1.3 caused huge loss to Natural Exchequer is there a provision to impose any LDs on violators.
29. Were considerations ever made during various deliberations with concerned stakeholders regarding the economic impact Dry Docking would have towards the energy and gas sector as a result of June/July being the high peak consumption time of the year? If so, please specify which meetings or correspondences highlighted these facts.