Power sector gets relief amid protest by petroleum stakeholders

Dawn | Sep 19, 2020 at 9:03 AM
  • Amid strong protest by the petroleum division and its corporate entities, the Cabinet Committee on Energy (CCoE) on Friday decided to exempt three Punjab-based power plants of 3,900mw from compulsory purchases of liquefied natural gas (LNG) quantities from January 2022.
  • The move to change gas supply agreements (GSAs) of these government-owned power plants (GPPs) reportedly originated at the request of the Privatisation Commission to attract better proceeds from sale of these LNG-based power plants and also forms part of overall efforts to reduce power costs.
  • The CCoE asked the petroleum division to take all mitigation measures to reduce the cost impact on gas sector and to avoid build up of liabilities.