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February 27, 2019

ECC okays SNGPL as RLNG supplier to power plant

Business

February 27, 2019

ISLAMABAD: Government on Tuesday gave an edge to Sui Northern Gas Pipelines Limited (SNGPL) over another state-owned Pakistan LNG Limited (PLL) to supply re-gasified liquefied natural gas (RLNG) to 1,263 megawatts power plant in the Punjab.

The Economic Coordination Committee of the cabinet (ECC) took the decision in a meeting presided over by Finance Minister Asad Umar.

ECC considered the proposal of the power division regarding approval of SNGPL as gas supplier for 1,263.2MW RLNG-based public sector power generation project near Trimmu barrage in district Jhang by Punjab Thermal Power (Pvt) Limited.

“In modification of its earlier decision of May 11, 2018, (the ECC) allowed signing of the PPA (power purchase agreement) and RA (reimbursement agreement) with SNGPL instead of PLL,” the finance ministry said in a statement. ECC further directed the provincial government to bear the differential in the cost of furnace oil and RLNG in case of provision of RLNG to the Trimmu’s power plant, and other plants to be operated on furnace oil.

PLL was incorporated in 2015 to import and supply gas to meet energy requirements in the country when first RLNG terminal was set up in the country. At present, the country has two RLNG terminals with 1.2 billion cubic feet/day of re-gasification capacity.

Currently, RLNG is supplied to power plants in Haveli Bahadur Shah (1,230MW), Bhikki (1,180MW) and Balloki (1,223MW).

ECC further approved supplementary grant amounting to Rs20 million to the ministry of national food security and research for operationalisation of its plant breeders' rights registry. The committee also directed the officials to expedite the process for creation of 71 posts in the registry.

The Economic Coordination Committee approved proposal of the commerce division based on request by Philip Morris Pakistan Ltd. for export and analysis of local tobacco seed at Eurofins Dr. Specht Lab, Germany. The analysis report from the Hamburg-based laboratory would help in production of good quality tobacco in future for domestic use and exports. The committee approved supplementary grant of Rs11.441 million to ministry of privatisation to meet expenses pertaining to relocation of its offices to the new premises at Kohsar block.

ECC approved supplementary grant of Rs46 million for payment to families of deceased employees of petroleum division (policy wing) under the Prime Minister’s Assistance Package. Legal heirs of the officers/officials of petroleum division (policy wing) who died, while in service, between 15 June, 2013 and 9 February, 2015, requested that they might be granted all the benefits as per the prime minister’s assistance package issued in 2014. “So the decision has accordingly been taken,” the ministry added in the statement.

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