The RLNG price to Power sector, bulk consumers, Fertilizer or CNG sector will be determined and notified by OGRA on a monthly basis. The price would include: (i) LNG Price DES, (ii) PSO Margin (iii) Terminal Charges under LSA (iv) SSGCL administrative margin for LSA (v) SSGC cost of service and / or transportation charges (vi) SNGPL cost of service and/or transportation charges, (vii) Transmission and Distribution Losses. The determination and notification of RLNG price will be made by Ogra on similar lines as that of Petroleum Products Pricing, without going through public hearings. The RLNG supply to IPPs would be on as and when available basis without any 'take or pay' clauses, subject to assurance of payments as agreed.
Sources added that during initial discussions, the IPPs were not willing to agree to firm RLNG supply arrangement under 'take or pay' clauses as their energy dispatches as well as forced/ scheduled outages were controlled by WAPDA. However, later an understanding was reached with the IPPs on supply of RLNG on "as available" basis for which they have consented to provide Standby Letters of Credit (SBLCs) in order to receive RLNG. The CCoE has approved that LNG payment mechanism of direct payments to PSO by the Ministry of Finance from the subsidy payable to power sector. Alternatively, payments to PSO for LNG supply would be made directly by Finance Division by creating adequate fiscal space. IPPs would provide minimum a 15-day firm schedule for supply of RLNG. The RLNG volume not picked up by IPPs will be offered to other bulk consumers at a price mentioned above and it may also be supplied to fertilizer sector or CNG sectors. Additional volumes of RLNG delivered to third party for making up the requisite BTU contents is currently treated as UFG pursuant to Ogra's relevant Rules. The same may be amended wherein such additional volumes shall not be subjected to UFG penalties. The ECC approved 50 per cent of transportation charges to be treated as Non Operating Income for both the gas companies. The volume and prices of RLNG sold to consumers may be ring fenced and considered separately for UFG benchmarking/ disallowance purpose only.
The ECC was requested that allocation of M/s Fauji Kabirwala Power Company Ltd (FKPCL) may be included in the list based on latest approval of ECC vide case No. ECC-16/2/2015 dated 23.01.2015 by an equivalent reduction from Kapco. Whereas GSA of M/s Rousch Power is expiring in June, 2015; therefore, allocation of RLNG to them is being proposed by replacing 100 MMCFD RLNG allocation made to Nandipur Power plant which is likely to take time to receive RLNG owing to technical modifications being made in plant.
Ministry of Petroleum proposed that to keep an option of commissioning of LNG terminal through PSO, PSO may be allowed to import one commissioning cargo through FSRU on FOB basis or an LNG carrier on DES-(delivered-Ex- Ship) basis under LNG SPA. Oil and Gas Regulatory Authority (OGRA) would suitably amend its relevant rules in order to incorporate the decisions of the ECC.