Sale of 15pc stake in Reko Diq: Minister says matters will be finalised soon

ISLAMABAD: Federal Minister for Petroleum Dr Musadik Malik, while talking to media persons, stated that the matters with Saudi Arabia are moving forward positively and will be finalised soon.

He clarified the media reports that the federal cabinet has accorded approval to the sale of a 15 per cent stake in the Reko Diq are not true.

A price negotiation committee is handling the matters to ensure negotiations proceed in a timely fashion to seal the deal soon. However, it has not been finalised yet.

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He said that circular debt of gas sector was around Rs2.7 trillion including late payment surcharge (LPS). To retain at the current level, the minister said that government would not continue to follow the law passed by the caretaker government to include imported RLNG’s cost of supply into biannual estimated revenue requirements (ERR) of both gas companies – the Sui Southern Gas Company (SSGC) and the Sui Northern Gas Pipeline Limited (SNGPL).

He said that government was also exploring alternate ways to adjust the surplus expensive RLNG other than a uniform gas tariff.

“The government has already deferred five RLNG cargos from Qatar for 2025 and negotiation is ongoing on other five cargoes in the following year”, he said.

He said that government has been negotiating with the IMF on the condition of the curtailing of gas to captive power plants (CCPs) by end of January 2025.

“The Fund is yet to agree on the government’s stance”, the minister said.

He said that government had already raised the gas tariff for CCPs for power generation and price equivalent to such plants which are on grid.

Regarding Iran-Pakistan Gas Pipeline, he said the government was pursuing the US administration for a waiver against its sanction.

Copyright Business Recorder, 2024