MUSHTAQ GHUMMAN

ISLAMABAD: Prime Minister Nawaz Sharif has reportedly directed Ministry of Petroleum and Natural Resources (MoP&NR) to finalise price and payment mechanism of Regasified Liquefied Natural Gas (RLNG) in consultation with Independent Power Producers (IPPs) within a week, well informed sources told Business Recorder.

Both the Ministry of Petroleum and IPPs have held a number of meetings with the blessings of Water and Power Ministry but most of the meetings have remained inconclusive due allegedly to the arrogant attitude of top brass of Petroleum Ministry, the sources added.

According to sources, while chairing the meeting of Cabinet Committee on Energy (CCoE) on May 22, 2015 Prime Minster also decided that RLNG will only be provided to IPPs instead of other sectors .

Prime Minister, Nawaz Sharif, sources said, was informed that the issue of RLNG price is still unsettled because both the IPPs and National Transmission and Despatch Company (NTDC) are unwilling to accept the RLNG without formal price approval from Oil and Gas Regulatory Authority (Ogra), currently dysfunctional. “Both the Petroleum Ministry and IPPs will formulate a mechanism for calculating the price of RLNG and payment within a week,” the sources continued. The Prime Minister has been informed that if diesel or furnace oil is replaced with RLNG, the price of electricity will come down to some extent as compared to diesel’s.

An official on condition of anonymity told Business Recorder that since OGRA is dysfunctional Petroleum Ministry can set a provisional price of RLNG as a petroleum product as it did in the case of petroleum products in the past.

“We have already started supply of RLNG to Kapco, Saphire and Orient power plants but Saif and Hamlmore are yet to get RLNG. We want RLNG to be formalized,” he added.

When contacted, Secretary Water and Power, Younas Dagha confirmed that the Prime Minister has directed Petroleum Ministry to sit with IPPs and finalise RLNG price, supply and other issues within a week.

In reply to a question, he said Water and Power Ministry also conveyed to the CCoE that if gas is provided to Guddu Power Plant, it could add 700 MW additional electricity to the system.

“We have informed the committee that Ministry of Water and Power can produce an additional 300 MW electricity in July, 260 in August and 170 MW in October, totaling 700 MW. Prime Minister directed Petroleum Ministry to immediately provide gas to Guddu Power Plant,” Dagha maintained.

With additional supply from Guddu, relief will be provided to consumers this summer and to some extent next summer as we have removed faults of several units in Guddu, he continued.

In reply to a question, Secretary Water and Power said the CCoE was informed that power load shedding in urban areas is 6 hours on average and 8 hours in rural areas. However, load shedding in high losses areas is more than in other areas. Load shedding in industry is 4 hours only.