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Existing Pipeline Capacity to be Allocated to New LNG Terminals

A meeting of the Cabinet Committee on Energy (CCoE) was held under the Chairmanship of the Federal Minister for Planning, Development and Special Initiatives, Asad Umar, in Islamabad on Thursday.

The CCoE, in its meeting held today, considered the Report of the sub-committee constituted by the CCOE vide its decision dated 18.01.2021 regarding the allocation of pipeline capacity to new LNG terminals.


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The CCOE decided that to provide a fair and level playing field to new LNG terminals, the existing available capacity in the pipeline will be allocated to any applicant (including CNG) that meets the requisite criteria for three months rolling basis, till such time the new terminals achieve commercial operations date.

The Power Division submitted the summary on payment mechanism and agreement with Independent Power Producers (IPPs). Power Division informed the Committee that out of 47 memorandums of understanding (MoUs), the implementation committee has agreed on the payment mechanism with 44 IPPs.

Secretary Power Division briefed the Committee on the purposed mechanism. Certain members of the Committee sought more time to study the proposals in detail. Therefore, the Committee decided to reconvene on February 8 for a final decision in the matter.

The Power Division presented the latest circular debt status and projections. The Power Division also briefed CCoE regarding the situation of Circular Debt from July 2020 to December 2020.

The Committee noted that the projected Circular Debt accumulation is decreasing due to the implementation of the Circular Debt Management Plan of the government.


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The Committee appreciated the Power Division’s regular monitoring of Circular Debt Situation and directed them to timely issue monthly data for the Committee to review.

Minister for Energy, Omar Ayub Khan, Federal Minister for Information and Broadcasting, Shibli Faraz, Federal Minister for Maritime Affairs, Syed Ali Haider Zaidi, Advisor to Prime Minister on Finance, Dr. Abdul Hafeez Sheikh, SAPM on Petroleum Nadeem Babar, and officials of various divisions attended the meeting.

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