ECC allows MOL to commence production from Tal block amid gas shortage

June 13, 2022 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Monday, provisionally allowed M/s MOL to commence production from Tal block namely Mamikhel South amid gas shortage, said a press release issued today.

TAL JV was given the 2012 Policy Price on a provisional basis till the further decision of the government. 

The meeting was presided over by Federal Minister for Finance and Revenue Mr Miftah Ismail at Finance Division, today.

As per meeting details, Petroleum Division submitted a summary for enhancement of Oil and Gas production from TAL blocks vis-a-vis provisional allocation of gas price.

Keeping in view the shortage of gas in the country, the ECC conditionally allowed M/s MOL to commence production from Tal block namely Mamikhel South.

The ECC also approved Technical Supplementary Grants of Rs25.61 billion for the Petroleum Division for the disbursement of Price Differential Claims (PDCs) to OMCs/Refineries for the first fortnight of June 2022 and additional requirements of the previous fortnight.

It also approved Rs36 billion in favour of the Petroleum Division to maintain the sustainability of the LNG supply chain as well as the import of petroleum products.

The allocated amount shall be released to SNGL against its pending claims in respect of the cost of RLNG diversion to the domestic sector for setting off the payable of PSO and PPL against RLNG supply.

 Besides, the Ministry of Energy, Power Division submitted a summary on tariff rationalization for the power sector.

The ECC after a detailed discussion approved the annual rebasing plan with certain modifications.

The ECC also directed Power Division to recommend subsidy reform adjustment for unprotected consumers which was approved in December 2021 but not implemented.

Copyright Mettis Link News