The Economic Coordination Committee (ECC) of the Cabinet has approved supply of up to 25MMcfd additional gas from Adhi Gas Field to Sui Northern Gas Pipelines Ltd (SNGPL) to meet the existing gas demand on the system. A meeting of the ECC presided over by Finance Minister Asad Umar on Tuesday was submitted a proposal for supply of gas from Adhi Gas Field to SNGPL by the Ministry of Energy (Petroleum Division).
Sources said the ECC of the Cabinet approved on 6.12.2014 allocation of 30 MMCFD additional gas from Adhi Gas Field to Sui Northern Gas Pipelines Ltd (SNGPL) enabling it to meet its existing contractual obligations. As of date, SNGPL and Pakistan Petroleum Limited (PPL) have contracted a gas sale and purchase agreement on a volume of 60 MMCFD from the field.
The PPL has now conveyed the potential for production enhancement from Adhi Gas Field to 85 MMcfd from the current committed rate of 60 MMCFD following planning and drilling of additional infill wells, sources said, adding that PPL has requested for allocation of additional gas, i.e., 25 MMCFD to SNGPL.
Since the current gas supply from the field is already allocated and being supplied to SNGPL, therefore, Petroleum Division proposed allocation of up to 25 MMCFD additional gas from Adhi Gas Field to SNGPL for meting the existing gas demand and supply deficit on the system.
The meeting also reviewed the demand and supply situation of urea in the country and directed Ministry of Industries and Production to chalk out a plan for continuous and smooth operation of urea plants in the country throughout the year. The exercise, ECC observed, would help ensure availability of sufficient stock of the fertilizer to meet demand of the farmers' community.
The ECC while considering the proposal regarding provision of funds for personnel related dues in the Pakistan Machine Tool Factory (PMTF), directed Ministry of Industries & Production to share with the committee, a strategy to revitalise the PMTF.
The meeting was of the view that the institution had done great service for the engineering sector and had the potential to effectively carry on this role, for which it needed to be strengthened.
The ECC also discussed proposal of Ministry of Energy (Petroleum Division) for fuel supply agreement between Pakistan State Oil (PSO) and State Oil Company of Republic of Azerbaijan.
The committee advised Ministry of Energy to carry out further consultations with stakeholders including Ministry of Commerce and Public Procurement Regulatory Authority before a final decision in the matter.
The Ministry of National Food Security & Research on the occasion submitted an update to the committee on export of public sector's surplus wheat/wheat products.
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