Government diverts LNG to fertilizer sector?

The government has reportedly diverted LNG to fertilizer sector from power sector in violation of the decision of the Economic Coordination Committee of the Cabinet (ECC), well informed sources in Water and Power Ministry told Business Recorder.
As per GoP policy, LNG was to be imported primarily and essentially for power sector to replace High Speed Diesel (HSD) and furnace oil. Halmore Power, Orient Power, Saif Power, Sapphire Power use high speed diesel and, as per the LNG policy, the first preference for LNG supply was to these four plants and then to Kapco and Fauji Kabirwala. However, Petroleum Ministry also suggested to divert 100 MMCFD LNG to M/s Rousch Power dedicated for Nandipur power project.
During the last few weeks, several meetings took place between the representatives of four IPPs and representatives of Ministry of Petroleum and Water & Power including representatives of SNGPL and PSO. On March 2, 2015, a very detailed and comprehensive meeting was held with the IPPs wherein even the Ministers of Petroleum and Water & Power along with Secretaries of Finance, Petroleum, Water and Power and the relevant team of SNGPL and PSO participated. It was finalized that LNG which was being imported by PSO will be given to the four IPPs, Kapco and then Fauji Kabirwala.
Subsequently, all main points were agreed upon and an MoU was also drafted and IPPs were to submit their increased SBLCs within 15 days from the start of receiving the RLNG. IPPs started to receive gas for last 2 days from the first cargo brought by the FSRU vessel. However, only after 2 days, RLNG from IPPs has been diverted to a fertilizer plant and some remaining molecules have been given to Kapco.
"This is a clear violation of the ECC decision of March 14, 2015," said an official on condition of anonymity.
The official maintained that ECC decision is very clear that if any terminal and pipeline capacity is available after lifting the firmed up requirement of the Power Sector, only then the fertilizer sector will be allowed to import LNG by itself and it may then also use the pipeline capacity to transport it. However, in a blatant denial of this ECC order, the firmed up capacity meant for power sector has been allocated/diverted to one of the fertilizer plants. Insiders in the Ministry argue that there is no transparency for the moment in governmental actions on LNG. Even the price of the LNG has not been disclosed as yet.
"GoP has taken a U-turn to the detriment of the general interests of the country and now there is no certainty when the power sector will receive gas to replace the expensive HSD," the official added.