ISLAMABAD: Petroleum Division has proposed reconstitution of Committee on import of Liquefied Natural Gas (LNG) after failing to evolve consensus amongst the stakeholders during the last seven years starting from 2018, well informed sources told Business Recorder.
Last week, Petroleum Division informed the Council of Common Interests (CCI) that although the Committee constituted by the CCI held meetings with all stakeholders, yet no consensus and report could be developed.
Meanwhile, new government took over and the Committee constituted in previous government/ CCI ceased to exist. Therefore, Petroleum Division has proposed that the Committee may be reconstituted with the same Terms of Reference (ToRs).
Prioritising imported RLNG to domestic gas harms energy sector
According to official documents, shared with the CCI, the Ministry of Inter-Provincial Coordination (IPC) updated the CCI that in 2018, the issue of import of LNG had been included on the request of Government of Sindh in the agenda of CCI.
The following major concerns of Sindh were presented and discussed :(i) LNG is not an import item. It is a gas and mandates decisions by CCI; (ii) swapping RLNG with local gas without concurrence of CCI and respective province; (iii) allocation of LNG to Punjab based projects; (iv) import of RLNG diverted federal government’s attention from exploration and indigenous oil and gas resources; (v) violation of article 158; and (vi) amendment of section 6.3 and 8.1 of LNG Policy, 2011, stipulate RLNG price as input for determination of Weighted Average cost of gas.
The CCI, in its 39th meeting decided that the LNG Policy along with observations of government of Sindh may be placed before the CCI in the next meeting. As per CCI’s decision of September 24, 2018, LNG Policy, 2021 and viewpoint of government of Sindh was submitted by Petroleum Division to 41st meeting held on December 23, 2019. The CCI, in its 41st meeting held on December 23, 2019 decided that SAPM on Petroleum will meet the Chief Minister Sindh to further deliberate the issue and report will be submitted in the next CCI meeting.
In its 42nd meeting held on August 6, 2020, the CCI noted the implementation status and directed that report would be presented by SAPM on Petroleum/ Petroleum Division in the next CCI.
In 43rd meeting held on November 11, 2020, the CCI decided that Power Division/ Energy Departments of the federal and provincial governments will hold meetings to deliberate on the issue highlighted in the presentation given by SAPM on Petroleum and would draw various options/ recommendations and way forward to be presented in the next meeting of the CCI, to be held in January, 2021. The SAPM will play the lead role in this effort.
The CCI held its 44th meeting on April 7, 2021 and decided to constitute a Committee comprising of Minister for Planning, Development and Special Initiatives, Minister for Energy and SAPM for Power and Petroleum to hold consultations with the provinces so as to evolve a consensus on the way forward in meeting the challenge of dwindling local gas reserves and increasing domestic gas requirements.
The 49th CCI meeting held on January 13, 2022 noted the implementation status and directed the Petroleum Division to submit report of the Committee to CCI in next meeting.
Copyright Business Recorder, 2025
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