Pakistan to build oil strategic reserves
The government has decided to build oil strategic reserves. The Cabinet Committee on energy has tasked Ogra to conduct a study to build strategic reserves of petroleum products.
Cabinet Committee on Energy (CCoE) on Friday directed Oil and Gas Regulatory Authority (Ogra) to conduct a study in this regard.
The Federal Minister for Planning Asad Umar chaired a meeting.
The Petroleum Division presented a report on the development of oil strategic reserves.
The petroleum division constituted a working group. It comprised representatives of OGDCL, PSO, PEPCO, PARCO, TPPL, and PRL.
The working group developed a concept paper and study the strategic reserve need.
It had completed the initial assessment. A detailed feasibility study is underway on the recommendations of the working group.
The Maritime Ministry also developed a proposal on this. CCoE directed forming a committee under OGRA.
The Maritime Ministry and Petroleum Division will be members to complete the proposal.
The committee will also review the detailed framework to build strategic petroleum reserves.
Security Agreements
CCoE considered the summary on standard security agreements for small Hydropower projects (up to 50MW).
Power division had presented a proposal under the Power Generation Policy 2015.
The policy envisaged the development of large as well as small Hydel projects (SHPPs).
CCoE agreed with the framework for the ongoing and committed power projects.
For small dams, the CCoE said that they have already directed and approved the policy for the creation of a market-based system.
To follow this, the risk and liability do not rest with the taxpayer of Pakistan.
These guidelines include the Competitive Trading Bilateral Contracts Market (CTBCM). Another is the “Wheeling Policy” which the government has designed for this very purpose.
It was further directed that this policy framework for small dams should be consistent with the policy direction.
CCoE also reviewed the Circular Debt Report for September 2021. The power division had submitted a report. CCoE appreciated the reduced accumulation of circular debt.