Ishaq Dar chairs meeting regarding provision of financial resources for North-South Gas supply system/infrastructure augmentation project

Islamabad, May 14, 2015 (PPI-OT): The Federal Minister for Finance Senator Mohammad Ishaq Dar chaired a high level meeting here Thursday evening regarding the provision of financial resources for the North-South Gas supply system/infrastructure augmentation project. Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi was also present.

The system augmentation project is highly critical to supply LNG (from south to north) to the three 3600 MW power project projects in the Punjab province. The Finance Minister said that at a time when Pakistan was well on its way to consolidating the economic gains that it had achieved during the past about two years, the Government desired for the completion of the project on priority basis. The Minister said that every effort to complete this project by December 2016 would be made.

It is worth mentioning that the Finance Minister had formed a committee on 11th April 2015 to propose viable financing options for the Project and also to present the detailed break up of financing requirements at different stages of the project. The committee comprising Additional Chief Secretary Energy Punjab, Secretary W and P, Secretary P and NR and Additional Secretary (CF) Finance Division has had detailed deliberations on various aspects of this project.

The chair also announced that the first instalment of the funding requirements for the project which would be around Rs.20 billion would be provided as early as possible. SNGPL and SSGC will enter an agreement with the power plants/Ministry of Water and Power on sale of gas. OGRA has already approved the project in principle. Out of the total 3600 MW capacity 1200 will be owned by the Government of Punjab while 2400 MW will be under the aegis of Ministry of W and P.

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