Govt proposes reconstitution of LNG import committee after seven years of stalled consensus

The Petroleum Division has recommended the reconstitution of the committee on the import of Liquefied Natural Gas (LNG), following years of failed attempts to reach a consensus among stakeholders. 

According to a news report, the division informed the Council of Common Interests (CCI) last week that despite several meetings since 2018, no agreement or conclusive report had been produced on the matter.

With the change in government, the committee formed under the previous administration ceased to exist, prompting the Petroleum Division to propose a new committee with the same Terms of Reference (ToRs) to continue addressing the matter.

In a report shared with the CCI, the Ministry of Inter-Provincial Coordination (IPC) provided an update on the issue, explaining that in 2018, the import of LNG was included on the CCI agenda at the request of the Government of Sindh. 

The key concerns raised by Sindh included the allocation of LNG to Punjab-based projects, the violation of Article 158 of the Constitution, and the amendment of the LNG policy, particularly regarding RLNG price determination.

The CCI’s decision in its 39th meeting was to present the LNG Policy, along with Sindh’s observations, at a later meeting. Further deliberations continued in subsequent CCI meetings, but a resolution remained elusive. 

In 2021, the CCI decided to form a new committee, led by the Minister for Planning, to consult with the provinces on the dwindling local gas reserves and the increasing domestic gas needs. However, progress has been slow, and the matter remains unresolved.

The Petroleum Division is now seeking to revive the committee to tackle these long-standing issues and to address the concerns raised by Sindh regarding LNG imports and domestic gas distribution.