The Economic Coordination Committee (ECC) of the Cabinet has allowed Power Division for signing of the Power Purchase Agreement (PPA) and Reimbursement Agreement (RA) with SNGPL for supply of gas to 1263.2 MW RLNG-based power generation project in Punjab.
The ECC meeting was presided over by Finance Minister Asad Umar. Previously the government on May 11, 2018, had rejected the proposal and denied signing of PPA for this RLNG base power plant. SNGPL will be the gas supplier for 1263.2 MW RLNG-based Public Sector Power Generation Project near Trimmu Barrage, District Jhang, by Punjab Thermal Power (Pvt) Limited after signing of the PPA and RA with SNGPL. Originally Pakistan LNG Limited (PLL) was supposed to be the gas supplier for this power plant.
The meeting further directed that in case of provision of RLNG to the power plant at Trimmu, if other plants were to be made operational/run on furnace oil (FO), the differential in the cost of FO and RLNG will be borne by the government of Punjab