Senate panel recommends lifting ban on new gas connections

Chamber official says local gas being supplied at tariffs equal to RLNG rates

ISLAMABAD: The Senate Standing Committee on Petroleum has recommended the government to suspend the moratorium on new industrial gas connections and gas should be distributed to consumers according to the constitution.

In a meeting held on Monday, participants briefed the committee on new industrial and commercial gas connections in areas where surplus gas was available and the status of the moratorium placed on gas supply to industrial and commercial units in 2011.

However, the industries have lately been provided re-gasified liquefied natural gas (RLNG) to meet their needs. The ban on new gas connections for domestic consumers has already been lifted.

Punjab is producing 119 million cubic feet of gas (mmcfd) and getting 1,000 mmcfd, Khyber-Pakhtunkhwa (K-P) is producing 411 mmcfd and getting 296 mmcfd, Sindh is producing 2,320 mmcfd against consumption of 1,696 mmcfd and Balochistan is producing 467 mmcfd against demand for 292 mmcfd.

Overall, Pakistan produces 4,170 mmcfd of gas compared with demand for 5,495 mmcfd. Senator Dr Jehanzeb Jamaldini revealed that Balochistan was receiving gas through liquefied petroleum gas (LPG)-air mix plants for two hours only.

Committee Chairman Mohsin Aziz emphasised that under the constitution, the gas-producing province had the first right of use. “Surplus gas may be provided for other provinces,” he added. In addition to that, RLNG was being imported to meet the shortfall.

The committee was informed that it was the responsibility of provinces to supply gas to the federal government under the constitution.

The chairman recommended the government to provide 100 mmcfd to K-P as its allocation had earlier been decided for new power projects in the province. “Projects are being delayed, the gas should be provided for the province,” he said.

The committee also took up the issue of low gas pressure in the industrial estate along Jamrud Road, Peshawar. It also discussed the weekly suspension of Sui gas supply in industrial areas in the jurisdiction of Jamshoro Chamber of Commerce and Industry, pressure to shift industries to RLNG and increased rates of Sui gas.

A representative of the Peshawar Chamber of Commerce and Industry accused Sui Northern Gas Pipelines Limited (SNGPL) of supplying locally produced natural gas at tariffs equal to RLNG rates. He disclosed that the K-P government had issued no-objection certificate to SNGPL for laying an independent pipeline for the provision of uninterrupted gas supply to the industrial estate in Jamrud.

SNGPL officials told the Senate committee that the gas utility was working on upgrading the pipeline network. Work on the new 32km gas transmission pipeline was in final stages, they said.

They denied that the consumers were supplied locally produced natural gas at tariffs that matched RLNG prices.

About 2.4 million applications were pending for new gas connections. Last year, the company achieved the target of providing gas connections to 600,000 consumers and in the current year the same number of connections would be provided.

Published in The Express Tribune, November 20^th, 2018.

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