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 here in Islamabad on Monday.
The CCOE in its meeting approved the Report of the sub-committee constituted by the CCOE vide its decision dated 18th January 2021 regarding the allocation of pipeline capacity to new LNG Terminals, with an aim to encourage investment and provide a level playing field to the LNG terminals.
The Power Division submitted the summary on Payment Mechanism and Agreement with Independent Power Producers (IPPs). The summary was based on the output of the implementation committee that was constituted to convert the MoUs with the IPPs into legally binding agreements.
The committee completed its task and agreed on a detailed implementation mechanism with all the IPPs. Secretary Power Division briefed the CCoE on the salient features of the agreements and other details. He further briefed that the agreements will result in significant savings over the life of these projects, as envisioned in the MoUs.
ALSO READ
Private LNG Terminal Developers Demand Waiver of Certain Regulatory Requirements
The CCoE approved the summary with recommendations to send the summary to ECC & Cabinet for further approval.
The Power Division requested the CCoE approval for ratification of a mistake made in previous summaries submitted to CCoE in its meetings held on 27th February 2019 and 28th August 2019, whereby three companies were erroneously included in two different categories at the same time.
The Committee took a serious view of the matter. The Ministry was asked to rectify the mistake immediately and extend full facilitation to the private investors.
The meeting was attended by Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, Federal Minister for Finance and Revenue Abdul Hafeez Sheik, Abdul Razak Dawood Advisor to the Prime Minister on Commerce & Investment, SAPM on Petroleum Nadeem Babar and official of various divisions.
