ISLAMABAD: Energy Minister Hammad Azhar said on Friday that the board of directors of Sui Northern Gas Pipelines Limited (SNGPL) had agreed to waive 66% of the “Take or Pay” clause for liquefied natural gas plants (LNG) owned by the government.

“In the long run, this will help reduce the capacity payments the government has to pay to power plants even when they are not providing electricity,” he tweeted.

SNGPL’s board today agreed to waive the 66% Take or Pay clause for government-owned LNG plants. In the long run, this will help reduce the capacity payments the government has to pay to power plants even when they are not providing electricity.

– Hammad Azhar (@Hammad_Azhar) December 3, 2021

The minister said the board of directors also approved, in principle, the company’s pipeline capacity allocation to Energas for its next LNG terminal which “will supply gas on a B to B [Business-to-Business] based.”

Hammad said this would pave the way for private sector entities to deliver the commodity to their consumers and ensure the availability of LNG across the country.

At the same time, in another tweet, the Minister of Energy stressed the need to harness the country’s full biogas potential to meet the energy needs of consumers.

“Pakistan has so far ignored the enormous potential of biogas for too long. SSGC requested the expression of interest for the production of biogas in its franchise area. SSGC expects to produce 4-5 MMCFDs under this venture as a pilot project, ”he said in a tweet.

Pakistan has so far ignored the enormous potential of biogas for too long. SSGC requested the expression of interest for the production of biogas in its franchise area. SSGC expects to produce 4-5 MMCFDs under this venture as a pilot project. @SSGC_Officiel

– Hammad Azhar (@Hammad_Azhar) December 3, 2021

The minister said that Sui Southern Gas Company (SSGC) had invited to express interest in producing biogas in its franchise area, adding that “SSGC expects to produce 4 to 5 MMCFD. [Million Cubic Feet per Day] gas through this business as a pilot project.

The development comes amid a gas shortage in the country, as the government decided to prioritize gas supply to the electricity and fertilizer sectors last month.

We can mention here that the import of LNG increased by 101.94pc to Rs72.372 billion against Rs35.837bn last year; the import of bituminous coal also increased by 120.36 pc to 41.339 billion rupees from 18.760 billion rupees last year.

While the import of LPG also saw an increase of 78.63pc to Rs9.320bn against Rs5.217bn over the last year and likewise, the import of heating oil showed a growth of 243pc to Rs6 .457bn in November for power generation against Rs1.881bn last year. .