Provinces say centre has no right to decide on LNG imports

Stress all such matters should be brought before CCI, instead of ECC, for their input

ISLAMABAD: Three provinces have closed ranks to defend their position and counter the federal government in relation to the liquefied natural gas (LNG) import policy.

They argue that the central government has no right to take decision on gas import, saying such matters should be placed before the Council of Common Interests (CCI) - an inter-provincial body - so that provinces have a proper say.

Sindh, Khyber-Pakhtunkhwa (K-P) and Balochistan made these arguments in a CCI meeting held on May 2, a senior government official revealed.

Now, the federal government has agreed to table the LNG policy before the CCI for review. However, Punjab, governed by the Pakistan Muslim League-Nawaz (PML-N), which is also at the helm in the centre, has expressed its reservations, insisting that the federal government does not require CCI’s go-ahead for LNG imports.

At present, Pakistan imports 600 million cubic feet of LNG per day which is supplied to power producers, fertiliser plants and CNG stations. Imports are expected to rise to 2 billion cubic feet per day by early 2019 when two more LNG terminals will start working. Already one LNG terminal is functioning at the Port Qasim.

Earlier, the federal government had been seeking approval of LNG-related matters from the Economic Coordination Committee (ECC) of the cabinet, but provinces stressed that they should be taken on board by bringing such issues before the CCI.

The senior government official said the Sindh administration had argued that LNG once re-gasified and turned into natural gas fell within the purview of Entry 2, Part-11 of the Federal Legislative List of the Constitution of Pakistan 1973.

Since the constitution did not distinguish between locally produced natural gas and natural gas produced from imported LNG, all policy decisions in respect of LNG should be placed before the CCI under Article 154(1) of the constitution, it said.

The province dismissed the view of the federal government that LNG was a federal subject coming under Entry 27 because the gas was imported, saying the argument was not tenable.

“Article 158 and Article 172(3) are not being implemented in letter and spirit as all policy matters including gas allocation and tariff are decided by the ECC instead of CCI,” it said.

If such matters were brought before the CCI, then as provided in Article 154(7) if the federal government or a provincial government was dissatisfied with decision of the council, it may refer the matter to the joint sitting of parliament, the Sindh government said.

Under Article 158, Sindh has first right over gas supply from wellheads situated in the province. Article 172(3), as amended through the 18th Amendment to the Constitution, provides that subject to existing commitments and obligations, mineral, oil and natural gas within a province shall vest jointly and equally in that province and the federal government.

Endorsing Sindh’s viewpoint, a representative of the K-P government stressed that the LNG policy should be referred to the CCI.

Balochistan too backed the Sindh government, stating that since the CCI was a well-represented body, all policy matters pertaining to gas and LNG should be brought before it.

Published in The Express Tribune, May 18^th, 2017.

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