Gas supply to fertiliser plants reviewed

Technicalities laid out to implement ECC decision.

ISLAMABAD: Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain said on Sunday that industrial gas consumers were being facilitated in the supply of gas; however, their cooperation was also required as the country was facing a shortfall of the fuel.

He was chairing a meeting that was called to review progress on the implementation of the decision taken by the Economic Coordination Committee on gas supply to four fertiliser plants.

It was decided in the meeting that the consortium of fertilizer plants shall execute formal Gas Supply Agreements with respective gas producers. The title of gas shall pass on to the consortium at the agreed delivery point. The consortium shall enter into Gas Transportation Agreements with two utility companies for the transmission of this gas through their existing main lines from the agreed point of entry to the designated point of delivery under the Third Party Access Rules, 2011 and pay the tolling fee as determined by the Oil and Gas Regulatory Authority under the said rules.

The investment required for augmenting the capacity of the main line will be borne by the utility companies as they will be entitled to a rate of return on their investment as well as charging a tolling fee from the consortium. However, the investment required on purification facilities, if required, and the connection from field gates to entry point of the main gas pipeline will be borne by the consortium of fertiliser plants.

Published in The Express Tribune, January 1^st, 2013.                 

Like Business on Facebook to stay informed and join in the conversation.