ISLAMABAD: Advisor to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain said on Sunday that industrial gas consumers were being facilitated, however their cooperation was also required as the country was facing gas shortfall.
He said this while chairing a meeting with representatives of the four fertilizer plants presently having Gas Sale Agreements (GSA) with SNGPL, SSGC, OGDCL, Mari Petroleum Company Ltd. (MPCL) and MOL Pakistan at SSGC Head Office, Karachi, said a press release issued here.
The meeting was called to review the progress on implementation of ECC decision that approved allocation of gas reserves from selected fields to the consortium of (four) fertilizer plants (on SNGPL system) using standard GSAs.
It was decided in the meeting that the consortium of fertilizer plants shall execute formal GSAs with respective gas producers. The title of gas shall pass on to the consortium at the agreed delivery point.
The consortium shall enter into Gas Transportation Agreement with two utility companies for the transmission of this gas through their existing main-lines from the agreed point of entry to the designated point of delivery under the Third Party Access Rules, 2011 and pay the tolling fee as determined by the OGRA under the said rules.
The investment required for augmenting the capacity of the main line will be borne by the utility companies as they will be entitled to rate of return on their investment as well as charge tolling fee from the Consortium. However, the investment required on the purification facilities, if required and the connection from field gates to entry point of the main gas pipeline will be borne by the consortium of fertilizer plants.
ECC has already approved that price of gas for each producer shall be fixed under the applicable petroleum policies/the relevant Gas Pricing Agreements.
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