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Finally, the policy of MP and NR to not WACOG of LNG in the portfolio of SSGC and SNGPL provided no incentive to users of LNG to switch to a new fuel as their capacity payments are assured under the Power Policy and current fuel pricing is well below international prices.
It was disappointing that LNG was being imposed with unnecessary restrictions whereas IPI gas @ US$11 would be part of WACOG and so will TAPI gas @ US$ 13.
(v) Import of LNG by IPPs be allowed and added to the WACOG. This be limited to spot cargoes and for utilization by the power plants only.
And if we were to WACOG, the levelized tariff for electricity would decrease using LNG as fuel.
Additional ECC approval be sought to allow IPPs to import LNG on spot cargo basis upto 50% of their requirements with price to be added in WACOG for the power sector as already approved by ECC.
The weighted average cost of gas (WACOG) in Pakistan is in the range of $3 to 4 per MMbtu.
* LDC Supply and Distribution: Manages gas acquisition storage, city gate balancing, WACOG cost, and on-system distribution to large end users, for example.
For that time period, MacAvoy estimates some $45 billion in gains to producers for selling gas at "weighted-average cost of gas" (WACOG) prices above market-clearing prices.
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- Waco Aircrcraft Company
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