The Economic Coordination Committee (ECC) of the cabinet is likely to approve relocation of two Independent Power Producers (IPPs) of 300 MW capacity in Wapda system as Karachi Electric Supply Corporation (KESC) has refused to purchase power.
Official sources told Business Recorder "The new management of KESC is reluctant to purchase power from Fauji Korangi and Western Electric Limited (WEL) both have 150 MW capacity each.
The Prime Minister has now directed Wapda to consider purchase of power generated by these projects," the sources said, adding that sponsors of both the IPPs have now proposed new sites for their projects at Nawabshah, but the company is hesitant to supply gas at these sites.
The ECC will consider summary of the petroleum ministry at a meeting to be presided over by the Prime Minister, to resolve the controversy. The ECC would also consider the revised Liquefied Natural Gas (LNG) policy to supply gas to the unfeasible areas through private sector.
The ECC approved LNG policy in one of its previous meetings but asked the ministry to incorporate some amendments and bring it back to the ECC for final clearance. The sources said that the ECC would also consider Pakistan's first LNG project by the Sui Southern Gas Company Limited (SSGC), in addition to issues relating to Exploration and Development of Coal Bed Methane (CBM).
A few months ago, the ECC had approved the policy, giving exploration rights to the provinces but there were still problems which are yet to be resolved. The ECC would also consider transfer of downstream industrial estate land to PIDC on the recommendations of industries ministry. The meeting will also discuss prices of essential items mainly cement edible oil/ghee and sugar along with future trends of prices.
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