Body formed to examine gas supply chain.

ISLAMABAD -- Amid growing number of suppliers competing for pipeline and terminal capacity, the Cabinet Committee on Energy (CCoE) on Monday constituted a subcommittee to examine in detail the availability of pipeline capacity and how to allocate it for transportation of re-gasified liquefied natural gas (RLNG).

Informed sources said the CCoE met briefly under the chairmanship of Minister for Planning and DevelopAment Asad Umar as some of the relevant stakeholders were based in Karachi and appeared to be unable to optimally contribute through video conference.

Therefore, Mr Umar constituted the subcommittee led by himself and comprising ministers and special assistants of the ministries of energy and maritime affairs to examine the entire natural gas/LNG supply chain and firm up within 10 days a holistic way forward on the issue.

The sources said that with the completion recently of a 17-kilometer pipeline from Port Qasim to SSGCL's Pakland tie-in point, the overall pipeline capacity for transportation of LNG had improved by 500-600mmcfd (million cubic feet per day). However, the LNG re-gasification capacity at the existing two terminals is limited.

At the same time, two prospective investors of LNG terminals, which had recently been given sales and marketing licences by the Oil and Gas Regulatory Authority (Ogra), plan to set up their own terminals expected to come online within two years. In the meanwhile, they want unutilised capacity owned by government entities in the short term to meet the demand of their dedicated consumers.

On the other hand, Ogra has also granted virtual pipeline licences to two more companies - LNG Easy to be based at Port Qasim and Daewoo Gas at Gwadar - to move their LNG through bowsers.

While these new developments take shape, the gap between demand and supply of gas is expanding and the government has made fresh policy adjustments in terms of gas supply to various sectors and will have to disconnect gas supply to various categories of captive power plants.

According to a summary, the Ministry of Maritime Affairs has proposed to the CCoE that to provide capacity in the existing pipeline to new LNG developers and to attract foreign investment, 'if there is any pipeline capacity in the existing pipeline network, it may be used by the government importing LNG itself till the time new terminals are commissioned' and then the existing pipeline capacity could be transferred to new terminals.

Secondly, any capacity...