ISLAMABAD: The Economic Coordination Committee (ECC) is likely to constitute a price negotiation committee for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project.
According to documents available with this scribe, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh has summoned the ECC meeting tomorrow (Wednesday) to deliberate upon seven agendas of different ministries.
Sources said that the forum would deliberate on the Petroleum Division’s summary regarding the constitution of a price negotiation committee for TAPI project.
“The purpose of constituting the committee is to determine the gas prices with Turkmengaz, as the Gas Sale and Purchase Agreement (GSPA) between Inter-State Gas System Limited (ISGSL) and Turkmengaz for the supply of 1.3bfcd gas to Pakistan was signed in 2012, however, the prices were not determined at that time,” sources added.
The TAPI project aims to bring natural gas from Galkynish and adjacent gas fields in Turkmenistan to Afghanistan and Pakistan. The federal cabinet had executed the Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA) for implementation of the project on December 11, 2010.
Meanwhile, the ECC would also take up two more summaries of the Petroleum Division, including allocation of gas from PGNiG’s Rizq gas field to Sui Southern Gas Company Limited (SSGCL); and exchange losses incurred by Pakistan State Oil on FE-25 loans booked on the instructions of the Ministry of Finance.
The committee would deliberate upon the Cabinet Division’s proposal pertaining to approval of technical supplementary grant of Rs1 billion for Pakistan Tourism Development Endowment Fund during 2019-20.
Moreover, the committee would take up the matter of Industries and Production Division regarding extension of government guarantee against credit facility of National Bank of Pakistan, amounting to Rs5 billion, in favour of Utility Store Cooperation. The forum would also consider the summary regarding the release of funds for payment of outstanding amount gas bills to SSGC.
Lastly, the committee would discuss the agenda of Water Division, as a request was made to settle the financial facility amounting to Rs38.12 billion raised by WAPDA from HBL for the settlement of net hydel profit.
