SNGPL agrees to a wave of 66% ‘Take or Pay’ clause says Hammad Azhar

ISLAMABAD: The board of directors of the Sui Northern Gas Pipelines Limited (SNGPL) has agreed to waive the 66 % “Take or Pay” clause for the government-owned liquefied natural gas (LNG) plants, a senior government official said.

“In the long run, this will help reduce the capacity payments that the government has to pay to power plants even when they are not supplying electricity,” Federal Minister for Energy Hammad Azhar tweeted.

The minister said the board also approved, in principle, the company’s pipeline capacity allocation for Energas for its upcoming LNG terminal that “will supply gas on a B2B [Business-to-Business] basis.”

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