THURSDAY JUNE 30: Renewal of 4 IPPs gas agreements: ECC special meeting today

ISLAMABAD: The Economic Co-ordination Committee (ECC) of the Cabinet is holding a special meeting on Thursday (today) to renew Gas Supply Agreements (GSAs), with four independent power producers (IPPs). The agreements are expiring on June 30, 2011.
The meeting, which has been called by Prime Minister Yousaf Raza Gilani on the request of Minister for Petroleum and Natural Resources Dr Asim Hussain, will be presided over by Minister for Water and Power Naveed Qamar, in the absence of Finance Minister Abdul Hafeez Shaikh.
Most of the members of the ECC were informed on Tuesday night about the hurriedly called meeting. The representatives of IPPs also met the Petroleum Minister on Tuesday to plead their case, which has already been backed by the Ministry of Water and Power. Sources said that the ECC will also increase the profit margin of oil marketing companies (OMCs) and dealers by about 50-60 paisa per litre. Both OMCs and dealers have already conveyed their recommendations to the Ministry of Petroleum and Natural Resources.
The meeting is also expected to approve two-day CNG gas holidays for Sindh which at present is exempted, and Punjab is making hue and cry, saying that discrimination is going with Punjab. Earlier, Prime Minister Gilani had directed the Ministry of Petroleum to prepare a comprehensive strategy to meet the energy needs, particularly gas and petroleum requirements for the next two years. He also stressed that gas load management plan for the country be prepared and announced urgently.
Minister for Petroleum briefed the Prime Minister on his recent visit to Iran and his meeting with the Iranian Minister for Energy. He apprised the Prime Minister that 1100 km of gas pipeline on the Iranian side has been completed while progress on the IP gas pipeline project on Pakistani side, which started on May 9, is satisfactory.
As regards import of electricity from Iran, he said that an Iranian team of experts would be arriving in Pakistan soon to assess the details of the project, particularly establishing connection with Pakistan's national grid. The Minister also briefed the Prime Minister on the progress on LNG terminal. He said that work on KPD (Kunner Pasaki Deep) has been started and 100 mmcf of gas will be available from October this year.
He added that 17 international bidders have shown Expression of Interest in supply of energy/gas to Pakistan. The prominent companies in this regard, he said, include Shell, Vital, GDF, Norwegian Fund and Daewoo Group. The Minister also discussed gas price rationalisation prospects and also assured the Prime Minister that Gas Load Management Plan for the country would be announced soon.