ISLAMABAD - Federal government is mulling option of reviewing the Liquified Natural Gas projects.
As per the media report, the government is planning to review the agreements pertaining to the Liquefied Natural Gas (LNG) terminals signed by the previous government over accusations of giving a higher rate of return to investors.
The issue came up for consideration before the meeting of Economic Coordination Committee (ECC) of the cabinet. During the meeting, officials from Petroleum Division informed the committee that the rate of equity/rate of investment for the first LNG terminal was 15 per cent while the investment rate for the second terminal was 15.4 per cent.
The members of the meeting observed that the rate of return on the investments was higher than recommended. They deemed that the evaluation of the said agreements was important to find out a chance to revise or amend the agreements. ------------------------------
The ECC directed the Petroleum Division to seek legal advice from the Law and Justice Division in this regard and find out an option to revise the terms and conditions.