Framework for developing strategic reserves: CCoE directs formation of body under Ogra

ISLAMABAD: The Cabinet Committee on Energy (CCoE) has directed constitution of a committee under the Ogra with the Maritime Ministry and the Petroleum Division as members for finalising the proposal and reviewing the detailed framework for the establishment of strategic petroleum reserves.

The CCoE met with Federal Minister for Planning, Development and Special Initiatives Asad Umar in the chair, here in Islamabad on Friday.

The Petroleum Division presented a report on the development of strategic petroleum reserves.

It was informed at the meeting that a working group comprising OGDCL, PSO, PEPCO, PARCO, TPPL, and PRL was constituted to develop a concept paper and study the strategic reserve requirement in the country.

This working group has completed the initial assessment and a detailed feasibility study is being planned based on the recommendations of the working group.

It was informed that the Maritime Ministry also developed a proposal on this.

PD to submit report on strategic oil reserves to CCoE

Therefore, the CCoE was directed to constitute a committee under the Ogra with the Maritime Ministry and Petroleum Division as members for finalising the proposal and reviewing the detailed framework for the establishment of strategic petroleum reserves.

The CCoE also considered the summary presented by Power Division on standard security agreements for small hydropower projects (up to 50MW) under the Power Generation Policy 2015.

It was informed that the policy envisaged the development of large as well as small hydel projects (SHPPs).

The CCoE agreed with the framework for the ongoing and committed power projects.

For small dams, the CCoE said that they have already directed and approved the policy for the creation of a market-based system, so that the risk and liability do not rest with the taxpayer of Pakistan.

Oil refining policy may be approved by CCoE on Friday

These guidelines include the Competitive Trading Bilateral Contracts Market (CTBCM) and “Wheeling Policy”, which have both been designed for this very purpose.

The committee further directed that this policy framework for small dams should be consistent with the overall policy direction.

The CCoE also reviewed the Circular Debt Report September 2021 submitted by the Power Division and appreciated the reduced accumulation of circular debt.

The meeting was attended by Minister for Finance, Minister for Energy, Advisor to PM on Commerce and Industries, Special Assistant to the Prime Minister on CPEC, and representatives of regulatory authorities and senior officials of ministries/divisions also participated in the meeting.

Copyright Business Recorder, 2021