SNGPL agrees to wave of 66% ‘Take or Pay’ clause for stated-owned LNG plants: Hammad

ISLAMABAD, Dec 03 (APP):Minister for Energy Hammad Azhar on Friday said the Board of Directors of Sui Northern Gas Pipelines Limited (SNGPL) had agreed to waive of 66 per cent ‘Take or Pay’ clause for the government-owned Liquefied Natural Gas (LNG) plants.

“In the long run, this will help in reducing the capacity payments that the government has to pay to power plants even when they are not supplying electricity,” he twitted.

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 B to B [Business-to-Business] basis.”

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