Pushing for LNG power plants, govt wants north-south pipeline to be completed fast

PM approves establishment of second LNG terminal, wants it to be completed by end of 2016

ISLAMABAD: The prime minister on Thursday directed to speed up development work for liquefied natural gas (LNG) power plants, as focus shifted to the North-South gas transmission pipeline. The government also allowed reallocation of re-liquefied natural gas (RLNG) as per availability and demand.

During a meeting at the PM House on Thursday, Nawaz was briefed by about the progress made on installing LNG power plants in the country.

Secretary Water and Power Younas Dhaga said that LNG plants with the combined capacity of 3600 mega watts were being developed.

Directing to speed up development work, Nawaz said that funds for South-North pipeline for LNG transmission had already been approved and therefore work on the project should start without any delay.

Nawaz also approved the establishment of a second LNG terminal and directed to complete it by the end of 2016.

Dar lets gas utility companies raise funds for pipeline

In the same ECC meeting, Finance Minister Ishaq Dar also allowed the gas utility companies to raise Rs101 billion from commercial banks, aimed at laying a new gas pipeline, which will have a capacity to deliver 1.2 billion cubic feet gas per day.

The total cost of the project is over Rs120 billion and the pipeline will service three RLNG-fired power plants of 3600 megawatts that will be set up in Punjab.

The Sui Southern Gas Company will raise Rs40 billion while the Sui Northern Gas Pipelines Limited will raise Rs61 billion from the commercial banks. The federal government will provide sovereign guarantees.

ECC allows RLNG reallocation

Later in the day, the economic coordination committee allowed ministry of petroleum and natural resources to allocate RLNG volumes based on availability and demand, while keeping in consideration the transportation infrastructure and allied matters.

The decision thus removes any ambiguity about allocation of RLNG.

The ECC had already decided that RLNG would be treated as a regular petroleum product.

Electricity Import

The ECC also allowed continuing purchase of 74MW electricity from Iranian Company, Tavanir.

The electricity is being purchased at a price of 6.25 cents per kilowatt hour.

The National Transmission & Dispatch Company limited (NTDCL) would now approach power sector regulator, Nepra, for approval of extension of existing tariff from January 2015 to December 31, 2015.