Power division seeks exemption from guaranteed lng sought.
The Power Division is seeking exemption from guaranteed liquefied natural gas (LNG) offtake for three power plants, a move that may aggravate woes of LNG suppliers and hurt gas imports from Qatar.
Since Pakistan started importing LNG from Qatar in 2015, the Pakistan Muslim League-Nawaz (PML-N) has been facing criticism from different quarters for striking a long-term LNG deal at high rates, which resulted in lower consumption of the fuel in the power sector.
LNG-based power plants were set up during the 2013-18 tenure of PML-N government with higher efficiency rates. However, the plants have remained shut most of the time because of being lower in the economic merit order, which leads to lower consumption of LNG and millions of dollars in capacity payments to LNG terminal operators.
At present, textile, compressed natural gas (CNG) and fertiliser sectors are consuming LNG. Textile and fertiliser industries are receiving LNG at almost half the actual price, which has put a burden of billions of rupees on the national exchequer.
The three LNG-based power plants had signed a gas sale-purchase agreement with LNG suppliers at a minimum 66 percent offtake.
However, the Power Division...
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