ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Monday approved a $150 million guarantee for issuance of letter of credits by Pakistan LNG Ltd (PLL) in favour of LNG suppliers.

Prime Minister Shahid Khaqan Abbasi chaired the meeting wherein different agenda items on various subjects were discussed. The meeting approved the proposal for refinancing of the loan for Wah Brass Mills Upgradation Project.

While discussing the exemption of taxes and duties (Gas Infrastructure Development Projects of Large Diameter Pipelines) relating to Petroleum Division, the committee referred back matter for discussion among the Finance Division, Federal Bureau of Revenue (FBR) and Petroleum Division. The objective is to sort out the issues that need to be brought before the ECC in its next meeting.

Regarding the removal of anomalies and mismatch in withholding income tax and input/output sales tax on LNG/RLNG transactions, it was decided that the stakeholders would further deliberate the issue and come up with the workable solutions, including the proposal for legislation, if required.

No more big firms to exit LNG projects

Minister of State for Petroleum Jam Kamal Khan on the sidelines of an Abu Dhabi energy conference on Monday said that the government did not anticipate any more major companies would pull out of the liquefied natural gas (LNG) projects after the exit of ExxonMobil.

“The reason for that consortium to pull out can be within their own financial aspects that would be their own decision,” said Mr Kamal.

“We don’t expect any more to pull out in fact investments are increasing.” ExxonMobil has pulled out of a major project in Pakistan, in a potential blow to plans to boost imports of LNG after years of winter shortages.

Published in Dawn, November 14th, 2017