ISLAMABAD: The Cabinet Committee on Energy (CCOE) on Monday rejected the proposal for invoking clause of forced majeur for supply of LNG contracts keeping in view the reduced prices in the international market. However, the highest forum of CCOE approved to authorize PSO/PLL to negotiate with ENI and Gunvor for fixed price of supplies for the next six to 24 months period.
Top official sources disclosed to The News on Monday that Islamabad would make efforts to get price of $4 to $4.5 MMBTU DES price and efforts to be made to bind as many cargoes as possible within this desired range. The market prices are changing on daily basis, so there is a need to get approval of the cabinet on emergency basis.
It was also emphasized upon for continuation of dialogue with the Qatar Petroleum at the highest level forachieving any final arrangement for achieving the desired results. The official sources said that the CCOE was briefed by the Petroleum Division about the impact of Covid-19 on oil and gas sector, as well as the optimization of LNG supplies.
The CCOE was briefed about the viability of different options to be pursued to optimize the supplies. The CCOE directed the Petroleum Division to continue engagement with the LNG suppliers to adjust the schedule of some cargoes as per the demand in the country. The CCOE was also briefed about the progress on the introduction of the competitive bilateral trading market in the power sector. The committee directed the Power Division and NEPRA to look into the gaps that might exist in the existing design and complete the process within the stipulated timelines and come up with policy recommendations requiring approval.
The committee was also briefed about the progress on the privatization of power sector entities. The CCOE directed the Power Division to refer any decision required in this regard to the Cabinet Committee on Privatization.
The CCOE was apprised about the progress on the introduction of reforms in the governance of power sector. The CCOE directed the concerned ministry to fast-track the process for the completion of outstanding issues. The agenda item regarding the report on power sector submitted by the committee constituted by the prime minister was included with the special permission of the chairman CCOE. The committee resolved that while the government should hold to account those involved in the wrongdoings, genuine investors should not be maligned. The CCOE decided to make recommendations to the cabinet in line with the government’s commitment to transparency and good governance. The members of the CCOE including Ministers for Railways Sheikh Rasheed, Minister for Energy Omar Ayub, Adviser on Finance Hafeez Sheikh, Adviser for Commerce and Investment Abdul Razak Dawood, SAPM on Petroleum Nadeem Babar, and officials from the Power Division and NEPRA were also present.
