ISLAMABAD: The Cabinet Committee on Energy (CCoE) approved a summary presented by the Maritime Affairs Division on the construction of oil storage facilities at Oil Installation Area of Keamari, Karachi.

The CCoE met with Federal Minister for Planning, Development, and Special Initiatives Asad Umar in the chair here on Thursday.

The meeting was informed that insufficient storage infrastructure at the ports creates a bottleneck in the supply chain and results in increased costs. To compressively review the situation and available options, the CCoE formed a sub-committee under Special Assistant to the Prime Minister on CPEC Khalid Mansoor including Member Energy Planning Commission, Secretary Petroleum, and Secretary Power. The sub-committee will submit its proposals to the CCoE within two weeks.

The Petroleum Division also presented the projected natural gas supply and demand position in the country for the coming winter. During the meeting, the Petroleum Division presented a detailed impact analysis of various policy options for the management of gas demand during winter 2021-22.

The meeting was informed that the enhanced demand of domestic consumers is to be met through savings from captive power generation. A prudent pressure management plan will also be developed to ensure the stable supply of gas to the consumers.

Gas supply to CNG stations will be curtailed during the winter. Industrial activity will be a focus in the gas management plans, especially the export industry. The CCoE approved the demand side of the proposals submitted by the Petroleum Division.

It was further directed that the CCoE will consider the supply side proposals in the next meeting. The CCoE also reviewed the monthly report submitted by Power Division on the out of merit power plant operations due to network constraints.

The committee was assured that a constraint removal plan for the encountered issues is already under implementation. The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Minister for Science and Technology, Minister for Railways, Advisor to the PM on Commerce and Industries, SAPM on CPEC, Chairman OGRA, Chairman NEPRA, representatives of regulatory authorities, and senior officials of ministries/divisions.

Copyright Business Recorder, 2021