WEDNESDAY JANUARY 26: $100 million urea to be imported: invite fresh bids for LNG project: ECC

ISLAMABAD: The Economic Co-ordination Committee of the Cabinet (ECC) on Tuesday decided to invite fresh tenders for LNG project and directed the Ministry of Petroleum to make necessary arrangement in this regard, said secretary finance, Dr Waqar Masood.
Talking to media after the ECC meeting, Secretary Finance said the meeting presided over by Finance Minister Dr Abdul Hafeez Sheikh also decided to import urea worth $100 million from Saudi Arabia. In reply to a question, Waqar said US $100 million would be sufficient for the import of 0.25 million tonnes of urea from the Kingdom.
The Secretary claimed the issue of anti-dumping duty with SABIC had been settled and there would be no problem in import. According to a statement, the Committee after having detailed deliberations decided to approve the summary moved by the Ministry of Petroleum and Natural Resources regarding allocation of gas at wellhead from OGDCL's dormant fields.
The summary had proposed that the gas from Nur Bagla, Jakhro and Sara West fields may be allocated to the Government of Sindh or its designated entity at wellhead, subject to the terms and conditions. It was decided (i) OGDCL will be paid according to petroleum concession agreement, (ii) policy price for gas as well as products ie LPG and condensate, (iii) product disposal by the buyer, in accordance with the prevalent rules and regulation and (iv) all applicable taxes.
The summary was moved in light of the 18th Amendment whereby mineral and natural resources are given as a subject to the provinces. The Committee was apprised that this year exports may touch the highest mark of $20 billion while remittances $10 billion, which will be for the first time in the history of Pakistan.
The Committee also deliberated at length on the summary moved by the Ministry of Industries and Production for the immediate restoration of gas for 30 days to the fertiliser industry for which a number of combination of proposals were also put forth for the facilitation of the committee. During the course of deliberations the committee was apprised that 55,000 tonnes of urea is stocked with the Trading Corporation of Pakistan, but that stock was specified to be distributed among the flood affected people through provinces.
The Minister for Finance tasked the already constituted committee on this matter for the import of .225 million tonnes. He also asked it to inform him accordingly about the available urea quantity in the country and gas availability for the fertiliser companies. The committee headed by deputy Chairman Planning Commission was also directed to get assurance from to SABIC (Saudi Arabia Basic Industries Corporation) for the delivery of urea before 15th February 2011. The Committee would also see the financial implications involved in the price differential of the 250,000 tonnes of urea.
The Chairman also tasked the Adviser to the Prime Minister on Agriculture Kamal Majeedullah to talk to the government of Sindh about lifting of the 55,000 tonnes of urea presently stocked with TCP, which is meant for the flood affected people of Sindh, so that this stock may be utilised for the general farmers, and the next production/or input shall be given to the Province of Sindh. On the summary moved by the Ministry of Petroleum and Natural Resources for the import of LNG, it was decided that the Law Ministry may be consulted, and review it in detail.