Cabinet approves changes in LNG policy ahead of PM’s Qatar visit

The federal cabinet on Saturday approved big changes in the Liquefied Natural Gas Policy, 2011 ahead of Prime Minister Shehbaz Sharif’s visit to Qatar, reported by 24 NewsHD TV channel.

According to sources, the federal cabinet’s approval for making big changes in the LNG Policy, 2011 was taken on emergency basis through a circulation ahead of PM Shehbaz’s visit to Qatar. 

Yesterday, the Economic Coordination Committee (ECC) of the cabinet at Finance Division approved the proposal to exclude new Liquefied Natural Gas (LNG) terminals and associated facilities from application of Third Party Access (TPA) and allowed amendment in Article 6.2(a) of LNG Policy, 2011.

The Ministry of Energy (Petroleum Division) had submitted a summary on amendments in LNG Policy, 2011 for exemption from mandatory TPA to new LNG Terminals.

Sources said that the cabinet approved to forego the condition regarding the Third Party’s access for the establishment of new LNG terminals. They said that the decision would help fulfil the rising demand of LNG in the country. 

They further said that the decision would encourage foreign and private investment in the LNG sector and there would also be chances of more investment in the LNG import terminals. 

Sources said that the difference between gas supply and demand causes gas loadshedding which affects commercial activities across the country. 

They further said under the circumstances and to diversify the LNG import infrastructure, there was a need to support and encourage foreign/private investment in the new LNG terminals at their own costs and risks to meet the growing demand of RLNG in the country.

Reporter Awais Kiyani