Saudi Aramco, PSO, TAPI gas pipeline: Oil, gas issues now come under sharper SIFC focus

ISLAMABAD: The Apex Committee (AC) of Special Investment Facilitation Council (SIFC) has directed Ministry of Foreign Affairs (MoFA) and Petroleum Division to expedite resolution of issues of Saudi Aramco and Pakistan State Oil (PSO) and TAPI gas pipeline, well informed sources told Business Recorder.

Minister for Energy Muhammad Ali has already dashed to China direct from Russia, as advance team of caretaker Prime Minister’s visit who has also landed in Beijing . Energy Minister is expected to interact with Bank of China/ Sinopec for establishment of either an oil refinery or Rekodiq project with an investment of over $ 10 billion, in addition to settlement of existing energy sector projects.

The AC of SIFC comprising top civil and military leadership headed by the Chief of the Army Staff, General Syed Asim Munir has directed Secretary MoFA, Secretary PD and Managing Director PPRA to sort out issues of land lease to PMDC at Gwadar and TAPI gas pipeline (including efforts to reap concrete outcome within stipulated deadline).

SIFC body seeks ‘Merit Order’ for gas supply

Following to be concluded by November 30, 2023: (i) Host Government Agreement (HGA); (ii) Gas Transport Agreement (GTA); (iii) pipeline system rules; (iv) Security Services Framework Agreement and Saudi Aramco/ PSO and; (v) Rekodiq project including exemption by PPRA for hiring of financial consultant. Secretary Petroleum will submit update on Greenfield Refinery Policy, discussions with Aramco and interests of other investors in refinery, in addition to roadmap to enhance LNP supply to consumers, not connected to piped gas, in small towns and rural areas.

The AC has also sought progress report from Secretary Petroleum, Secretary Industries and Production and Secretary Finance on steps taken to ensure steady supply of gas to industry, fertilizer, power generation, commercial and domestic consumers.

Secretary Petroleum will examine Import of RLNG to RLNG to avoid curtailment of supply of gas to fertilizer sector, industries and power generation in winter.

A committee, comprising Minister for Energy, Minister for Commerce and Industries, Secretary Power, Secretary I&P, Secretary Finance, Secretary Petroleum, Secretary I&P has been directed to present action plan for ensuring regionally competitive energy prices and reliability of supply for export industry with particular focus on the following: (i) implementation of Weighted Average Cost of Gas (WACOG) being worked out by Petroleum Division and; (ii) permission of wheeling at feasible rate.

Ministerial level deliberations to be held to explore the viability and mechanism of purchasing electricity from Turkmenistan whereas options of gas swap from Azerbaijan/ Turkmenistan to address the issue of gas import from Iran will also be examined.

The proposal to include in essential services in accordance with Pakistan Essential Services (Maintenance) Act, 1952 will be examined.

The sources said, Secretary Power and Chairman NEPRA to prepare a summary for the Federal Cabinet Committee for consideration regarding amendment in NEPRA Consumer Service Manual.

An anti-theft taskforce (comprising officers from law enforcement, district administration and intelligence agencies) will be attached with Discos with sufficient losses, QESCO, PESCO, SEPCO and MEPCO and HESCO. The pilot project will commence with HESCO.

Secretary SIFC Jameel Ahmed briefed the 6th AC meeting and provided an update on activities of SIFC Secretariat since 5th AC (during September 2023) including ;(i) handling of three foreign delegations from Japan, China and Turkiye; (ii) holding of two consecutive sessions of 5th Executive Committee on 26th and 27th September; (iii) facilitation of 47 investors’ meetings ;(iv) resolution of three pending business issues and; (v) progress on 12 cases of foreign and local companies working in Pakistan.

Copyright Business Recorder, 2023