ISLAMABAD: The Cabinet Committee on Energy (CCoE) which is scheduled to meet on Thursday (Feb 4) with Minister for Planning, Development and Special Initiatives, Asad Umar in the chair will consider the long-awaited National Electricity Policy 2021. On January 28, 2021, the Power Division submitted the policy to the Economic Coordination Committee (ECC) of the Cabinet for co-nsideration, which. However, recommended that the policy should be presented before the CCoE for consideration. The ECC suggested that the CCoE should also take provinces on board while finalizing the policy.
The CCoE is also expected to approve agreements with 47 Independent Power Producers (IPPs) which have already been initialed by both the representatives of IPPs and Government of Pakistan.
According to sources with the initialed agreements claims of about Rs 400 billion have been shared with the Finance Ministry which has to arrange the funds as per the agreed mode of payment with the IPPs.
In this regard, Finance Minister, Dr. Hafeez Shaikh, who is head of the Implementation Committee, presided over a meeting on the pros and cons of payment mode and other relevant issues.
Power Division, will submit the details of circular debt from July to December 2020-21 as per the format already approved by the CCoE. The report also covers following aspects: circular debt data of corresponding months, comparison of current year and last year figures of circular debt; projected figures of circular debt up to Jun 2021, breakup of circular debt (operational and non-operational part) and paid/unpaid budgeted/unbudgeted subsidy 2019-20 & 2020-21.
A sub committee headed by Minister for Planning, Development and Special Initiatives will present report on allocation of existing capacity in the gas pipeline to the two upcoming new LNG terminals at Port Qasim, Karachi.
The Ministry of Maritime Affairs noted that the Cabinet decided that all five terminal operators may be issued provisional LoI, who have conducted QRA on the sites assigned to them. Accordingly, PQA issued LoI to said terminal operators.
Subsequently, two terminals operators M/s Energas Terminal (Pvt) Limited and M/s Tabeer Energy (Private) Limited accepted the terms & conditions and deposited $ 2.00 million each as part of concession fee (out of total $ 10.00 million concession fee each) and remaining US$ 8.00 million to be deposited upon signing of Implementation Agreement.
Ministry of Maritime Affairs in collaboration with Petroleum Division had facilitated the new LNG terminal developers in securing NOCs from various Ministries/Departments, for expeditious completion of new LNG Terminals, however, following two issues had impeded the implementation of the project: (i) allocation of capacity in the existing as well as planned gas pipeline to transmit LNG from new terminals and; (ii) grant of NOC by Ministry of Defence to establish LNG terminals at Port Qasim.
The MoMA, proposed that Ministry of Defence issues NOC within thirty (30) days for the establishment of two new LNG terminals at Port Qasim Karachi as there are precedents available on record; and Petroleum Division to undertake and commit to the new terminal operators for allocation of LNG gas in the existing pipeline on first come — first serve basis and providing capacity to both the terminal operators in new planned gas pipeline within 30 days, so that formalities could be completed by the terminal operators for establishing the terminals.
Ministry of Maritime Affairs submitted following recommendations to the CCoE for consideration, in order to provide capacity in existing pipeline to the new LNG developers and to attract foreign investment: (i) if there is any pipeline capacity in the existing pipeline network, it may be used by the Government by importing LNG itself, till the time new terminals are commissioned and Government used existing pipeline capacity can be transferred to new terminals; (ii) any capacity, whether "unutilized "or "excess", is offered to private parties only on a short-term 3-month forward visibility basis, after approval from all relevant stakeholders. As highlighted by MoE based on the ECC decisions. (iii) Gas Transmission Companies may be directed to share draft Gas Transmission Agreement with both the new LNG Terminal Developers, which may be finalized before the grant of Transmission/Transportation license by Ogra, but signed once 'OGRA gives' licence and; (iv) OGRA may be directed to expedite the issuance of all relevant licences after fulfilling all the codal formalities.
The CCoE constituted a sub-committee under the Chairmanship of Minister for Planning, Development and Special Initiatives comprising Minister of Power, Minister for Maritimes Affairs, Special Assistant to the Prime Minister on Petroleum, Special Assistant to the Prime Minister on Power, Secretary, Power Division, Secretary, the Petroleum Division and Secretary, Ministry of Maritimes Affairs to deliberate on the issues regarding allocation of pipeline capacity to new terminals and formulate recommendation for consideration of the CCoE. The committee will present its report to the CCoE today.
Copyright Business Recorder, 2021
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