ECC to resolve fuel offtake commitments on LNG plants to be privatised.
ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet on Friday (today) will resolve a dispute between Power Division and Petroleum Division on the supply of RLNG to the two RLNG-fired plants being privatised.
The meeting will have a single-point agenda to remove the condition of 66 percent compulsory utilisation of Liquefied Natural Gas (LNG) by two mega power projects for facilitating their privatisation as required under the International Monetary Fund (IMF) programme.
The Ministry of Power has proposed to absolve the power sector of the 'take-or-pay' responsibility despite the fact the Pakistan State Oil (PSO), the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) have opposed the proposal on the grounds that they were under international obligations to import LNG for power projects.
The issues are related to outstanding payment of Rs10 billion revision of Gas Supply Agreement (GSA), Power Purchase Agreement (PPA), political force majeure of non-supply of gas and confirmation of Gross Calorific (GCV) for future LNG...
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