CCOE directs Petroleum Div to submit summary to ECC

ISLAMABAD – A report compiled by Deputy Chairman Planning Commission on the establishment of Liquefied Natural Gas (LNG) import terminals and virtual LNG pipeline at Gwadar has recommended that potential investors be allowed to conduct all required studies at port and Ministry of Maritime Affairs, OGRA and Port Authorities should process all pending applications in this regard.

The Cabinet Committee on Energy (CCOE) that met under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar here on Thursday directed the Petroleum Division to submit a summary to the Economic Coordination Committee (ECC) of the cabinet for the resumption of operations of Jamshoro Joint Venture Limited (JJVL) for LPG production, official source told The Nation.  

A report by the Deputy Chairman Planning Commission on the establishment of Liquefied Natural Gas (LNG) import terminals and virtual LNG pipeline at Gwadar was presented to the CCOE. As per the project detail, Gwadar International Terminal Limited (GITL) and Gwadar GasPort(Pvt) Limited (GGPL) signed an agreement on December 17, 2020 to develop a fast track LNG import terminal at Gwadar Port and to deliver gas without using any government-owned gas infrastructure in the country. The project envisages that it shall have a Floating Storage Unit (LNG vessel) to be berthed permanently at Berth 3 of the Port. LNG will be replenished in the FSU using LNG carriers, Qatar/Abu Dhabi/Oman being close to Gwadar, will be sources of supply. LNG will be discharged from FSU into ISO road tankers. ISO tankers will provide uninterruptable supply of LNG (in the small storage tank) placed at the customer premises where vaporiser for re-gasification of LNG will be installed. The company targets delivery of LNG at the doorstep of customer, at competitive price. Around 300 mmcfd or 2.25 Million Tonnes Per Year (MTPA) of LNG will become available. It is alleged that the non-issuance of NOCs by OGRA for the construction of new virtual pipeline LNG import terminal at Gwadar is the main hurdle in the execution of project for providing 300 mmcfd imported gas to the port city. 

CCoE considered the report compiled by the Deputy Chairman Planning Commission on the establishment of LNG import terminals and virtual LNG pipeline at Gwadar. The committee was informed of significant investor interest in the sector and the need for LNG import in the country. Port authorities and OGRA are to process the applications as per LNG Policy 2011. 

The committee asked for activation of the Task Force, envisaged in the LNG Policy, to act as a facilitator for the timely completion of the terminal projects. The Task Force and relevant ministries were asked to review the recommendations and present a concrete way forward and any decisions required by the government.

The report compiled by DCPC has recommended the Cabinet Committee on Energy (CCOE) that potential investors be allowed to conduct all required studies and Ministry of Maritime Affairs, OGRA and Port Authorities should process all the pending application for the instalment of LNG terminal as per LNG policy 2011 and LNG rules 2007.The report further said that the safety and viability of using Berth 3 for LNG handling will only be ascertained when the potential developer conducts the requisite studies and the OGRA and Port Authorities will review the findings.

The Cabinet Committee on Energy considered the report on the issue of enhancement of domestic LPG production. Deputy Chairman Planning Commission presented the recommendations on the way forward for maximising affordable gas supply to the residential consumers. 

The committee underscored the need for addressing both the short-term and longer-term gas sector issues. The CCoE directed the Petroleum Division to submit a summary to the Economic Coordination Committee (ECC) of the cabinet for the resumption of the operations of Jamshoro Joint Venture Limited (JJVL) for LPG production.  

The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Minister for Interior, Advisor to PM on Commerce & Industries, Deputy Chairman Planning Commission, Chairman OGRA and Chairman NEPRA. Representatives of regulatory authorities and senior officials of ministries/divisions also participated in the meeting.

 

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