On another proposal of Ministry of Water and Power, the ECC gave approval to non-cash settlement of Rs 70.167 billion in respect of power sector payables/receivables among various government entities. The ECC approved Ministry of Petroleum and Natural Resources' proposal on implementation of North South Gas Pipeline Project under a government to government agreement with Russia. The meeting constituted a price negotiation committee with Secretary petroleum, Secretary Law, Secretary Board of Investment (BoI), Representative of Finance Division, Managing Director Sui Northern Gas Pipeline Limited and Managing Director Inter State Gas System (ISGS) to negotiate the project details and pricing with the Russian side.
Sources added that the meeting was informed that the project would be able to transport 1.2 BCFD from Karachi to Lahore by laying 1100 kilometer pipeline system that would enable the government to transport RLNG as well as gas from IP and TAPI gas projects. The ECC also considered the proposal on re-structuring of Gwadar-Nawabshah LNG terminal and pipeline project and approved implementation of the project on Build Own Operate and Transfer (BOOT) basis.
The ECC also directed the Ministry of Petroleum and Natural Resources to complete the formalities in this regard by ensuring that revised strategy does not result in any cost escalation. The meeting also decided that Secretary Petroleum and Natural Resources will chair the price negotiation committee and secretary law, secretary Board of Investment, representatives of Finance Division, MD SNGPL and MD ISGS will be members of the Committee.
The ECC considered the proposal of Ministry of Petroleum and Natural Resources on LPG Air Mixture projects and decided that in view of CCI approval on February 29 regarding LPG Policy 2016, any further approval from ECC was not required in the matter. The meeting observed that now it was up to Oil and Gas Regulatory Authority (OGRA) to implement the approved policy in letter and spirit.