ISLAMABAD: The Executive Committee of Special Investment Facilitation Council (SIFC) has agreed to utilize Pakistan International Bulk Terminal Limited (PIBTL) for handling other commodities including copper, gold, metals and other natural earth minerals, well-informed sources told Business Recorder.
At a recent meeting of SIFC’s EC, it was informed that PIBTL and Port Qasim Authority (PQA) entered into a Build-Operate-Transfer (BOT) contract, to construct, develop, operate the coal and cement terminal at Port Qasim for 30 years.
As per agreement, PIBTL can only handle coal, clinker and cement, classified as dirty bulk cargo. Reko Diq Mining Company (RDMC) has identified PIBTL as the preferred copper concentrate export terminal (as an interim measure) till operationalisation of Gwadar port and requested approval for usage of PIBTL for the purpose, being a project of national significance.
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According to sources, Port Qasim Authority argued that inclusion of copper concentrate in the existing implementation agreement requires Public Procurement Regulatory Authority (PPRA) exemptions. However, PPRA opined that there is no requirement for exemption of rules as the said agreement does not involve any procurements.
After detailed discussion, the EC of SIFC unanimously agreed to the provision of exemption to utilize PIBTL for handling other commodities including copper, gold, metals and other natural earth minerals.
The Executive Committee directed Ministry of Petroleum and Natural Resources to move case to PPRA, through Ministry of Maritime Affairs (MoMA) to seek exemption and allow PQA, PIBTL to amend Implementation Agreement (IA) to permit and facilitate handling and export (on non-exclusive basis) of copper, gold commodities including minerals, metals and other natural earth commodities from PIBTL.The process for exemption and amendment of Implementation Agreement was to be completed by March 15, 2025.
The SIFC has also directed that FIA inquiry against the officials of SSGC in case of Jamshoro Joint Venture Limited JJVL be concluded on merit, at the earliest while keeping Minister Petroleum, Dr. Musadik Masood Malik /Ministry of Energy (Petroleum Division) on board.
According to official documents, 11thECM previously directed for resumption of JJVL plant as per revenue sharing formula (to be used as benchmark) which was earlier endorsed by the Supreme Court of Pakistan (SCP) based on agreement between the parties.
The SCP had approved interim revenue sharing of 57% for SSGC and 43% for JJVL and appointed A.F. Ferguson & Company (“AFFCO”) to determine a final revenue sharing formula, subject to court’s approval. AFFCO determined revenue sharing of 57.54% in favour of SSGC. No product sharing between SSGC and JJVL was provided for in the SCP-approved agreement. However, non-agreement between both the parties has left the matter inconclusive.
The sources further stated that Working Group meeting was held on January 21, 2025 for reaching an arrangement, however WG noted that still a gap existed between SSGC’s proposed revenue sharing ratio of 78:22 and JJVL’s offer of 64:36, both allocating 25% LPG to SSGC.
SSGC, however, contended that with the captive and industrial blend it can be further adjusted to 70:30 and in case of disconnection of Gas to CPPs this ratio will become 56:44. The WG determined that consensus can be achieved on revenue sharing at 66:34 ratio (SSGC: JJVL), with 25% LPG share for SSGC based on the OGRA-notified producer price.
After detailed discussion the Executive Committee concurred with the decisions of WG meeting held on January 21, 2025 and directed the following: (i) JJVL plant must be made operational without any further delay, given national objective of maximizing domestic production of LPG; (ii) an agreement be reached over revenue sharing at 66:34 ratio (SSGC: JJVL) with 25% LPG share for SSGC based on the OGRA notified producer price. This ratio has been considered being well above the ad-hoc/provisional revenue share, of 57:43 (SSGC: JJVL) endorsed by SCP. Revenue sharing of 66:34 (SSGC:JJVL) is based on the actual sales value to SSGC considering actual sales-mix of fertilizer (31%), process (27%) and captive power units (42%) connected to SMSs, ie, FJFC and FFBQL, “Sales Mix”;(iii) additionally, in the event of price revisions OGRA or changes in Sales-Mix/consumer categories by the Federal Government, the revenue sharing ratios between the parties will be reviewed and revised accordingly;(iv) pending undisputed dues, payable to SSGC by JJVL, will be cleared before resumption of gas supply to the plant; (v) FIA inquiry be concluded on merit, at the earliest. Minister Petroleum/Ministry of Energy – Petroleum Division be kept on board; and (vi) SSGC to place the directions from EC/arrangement before its BoD for approval and Petroleum Division to ensure compliance.
Copyright Business Recorder, 2025
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