Pakistan discusses energy related matters with US authorities

ISLAMABAD: Minister for Energy Omar Ayub Khan and Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar Monday held a virtual meeting with Assistant Secretary of US State Department for Energy Resources Francis R Fannon.

US Chargé d'Affaires Angela Aggeler was also present in the virtual session, during which the both sides discussed the energy sector including Pakistan’s third party access policy for gas infrastructure, a Petroleum Division news release said.

The minister gave an overview of Pakistan's Energy sector and the present government's earnest endeavours in reforming the country’s energy sector.

The SAPM highlighted the key areas of Third Party Access Rule under which the government would open up the Liquefied Natural Gas (LNG) business from a pure state-led monopoly to an open market for private participation.

He explained about the government policy of not increasing its financial commitments in the LNG sector and allowing the private sector to step in.

The SAPM also apprised the participants that if the existing terminals wanted to remarket their excess capacity, they were free to do.

While explaining the Third-Party Access (TPA) rules, Nadeem Babar said that the TPA was already available for the pipelines too.

He further said that the pipelines were now open access to anyone who had the gas marketing licences from the independent regulator – Oil and Gas Regulatory Authority.

“Any unused government capacity of terminals is also being advertised and private companies will be able to bring & sell the LNG to consumers of their own choice.”

Nadeem Babar termed the TPA rules a ‘favourble development’ that could, hopefully, lead more US companies to invest in the LNG sector of Pakistan.

Fennon thanked the Minister and SAPM for the informed session on TPA rule of Pakistan.

He hoped that the US would step up cooperation in the energy sector.