ISLAMABAD: Special Assistant to Prime Minister (SAPM) Nadeem Babar termed third party access (TPA) rules as a favorable development that could, hopefully, lead more US companies to invest in the LNG sector of Pakistan. Federal Minister for Energy Omar Ayub Khan and Nadeem Babar said in a virtual meeting with Francis R Fannon, assistant secretary of the US State Department for Energy Resources on Monday. Angela Aggeler, US Chargé d'Affaires was also present in the virtual session.
Both sides discussed the energy sector including Pakistan's third-party access policy for gas infrastructure for private investors. The federal minister gave an overview of Pakistan's energy sector and the present government's earnest endeavors in reforming the energy sector of the country.
The SAPM highlighted the key areas of Third Party Access Rule under which the government would open up the LNG business from a pure state-led monopoly to an open market for private participation. He explained the government of not increasing its financial commitments in the LNG sector, and allowing the private sector to step in. The SAPM also apprised the participants that if the existing terminals want to remarket their excess capacity, they are free to do. While explaining the third-party access rules, he said that the TPA is also available for pipelines already.
He further said that the pipelines are now open access to anyone who has the gas marketing licenses from the independent regulator OGRA. Any unused government capacity of terminals is also being advertised and private companies will able to bring and sell the LNG to consumers of their own choice. Fennon thanked the minister and the SAPM for informed session on the TPA rule of Pakistan. He hoped that the US steps up cooperation in the energy sector.
Copyright Business Recorder, 2020
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