In order to ensure pipeline capacity being allocated for new terminal developers, Federal Cabinet has directed Petroleum Division to streamline work of Pakistan Gas Pipeline. As in the past, Minister for Maritime Affairs, Ali Zaidi was unhappy at the volume of capacity for the two terminals allocated for defined capacity. Thus, an output of the recent Cabinet Committee on Energy (CCoE), the OGRA, and SNGPL will allocate 250-300 MMCFD pipeline capacity to each of the new LNG terminal developers. Whereas SSGC will provide land for the establishment of fire-fighting station and tie-in-points to the new LNG terminal developers under same terms and conditions. Moreover, both new LNG terminal developers should close their Financial Investment Decisions (FIDs) within 60 days of signing of the Gas Transportation Agreement (GTA). However, after extensive deliberation, a consensus has been achieved with both companies (SNGPL and SSGPL) on arrangements while considering contractual commitments with domestic, industrial and commercial clients ignoring other seasonal variations. The summary of agreed agreement is: A firm commitment for making available pipeline capacity on three months rolling basis and enhanced capacity for coming winter. Furthermore, the predicted steps to be taken in the long run are the signing of GTA by respective parties that will be approved by OGRA. The communication of dates of FID and COD for ground breaking will be utilized for allocated capacity after COD.
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