Govt set to lift ban on new gas connections

CCOE will meet to discuss moratorium on industrial consumers in Balochistan

ISLAMABAD:

The government is set to remove the moratorium on new gas connections to industrial and captive power consumers in Balochistan.

The Cabinet Committee on Energy (CCOE) will take decision on the matter in its meeting.

Owing to the increasing gap between demand and supply of natural gas in the country, the then prime minister, in his directive on April 18, 2011, imposed a moratorium on the provision of new industrial and commercial gas connections across the country with immediate effect for a period of six months.

Subsequently, while considering a summary submitted by the then petroleum ministry, the prime minister extended the moratorium in September 2011 and approved the proposal for gas connections to commercial and industrial sectors in Balochistan with certain caveats.

The moratorium imposed on new commercial and industrial connections was extended for one year except for those who had paid connection charges/security deposit or deposited 100% cost of the pipeline to be laid for them. It was stated that the moratorium would not be applicable to Balochistan.

However, for industrial connections, the petroleum minister would decide on a case-to-case basis. It is evident from the above that the moratorium is not applicable to the provision of industrial/commercial connections based on indigenous gas in Balochistan, however, the approving authority for industrial connections is the minister for petroleum.

The Petroleum Division held a meeting on January 30, 2020, chaired by the energy minister, to discuss the policy related to provision of gas to industrial/captive power consumers in Balochistan.

After detailed discussions, it was decided that a five-member ex-officio committee would decide/approve the industrial gas connections for Balochistan.

At first, the committee will formulate criteria for approving the new connections to eliminate possibility of any discretionary decision. The committee will be chaired by the Petroleum Division secretary and will include Balochistan energy secretary, Balochistan industries secretary, Petroleum Division DG gas and Sui Southern Gas Company senior general manager distribution.

The moratorium was imposed by the prime minister and the petroleum minister was authorised to take decision on industrial/commercial connections in Balochistan.

Accordingly, the prime minister’s approval was sought for finalising the proposed committee to decide on Balochistan gas connections.

The Prime Minister’s Office, vide its order dated 14.07.2020, communicated that the prime minister had approved that the Petroleum Division shall place the summary before the CCOE.

The approval of the energy committee has been solicited for the proposed committee to decide and approve industrial gas connections in Balochistan on a case-to-case basis.

Published in The Express Tribune, December 3^rd, 2020.

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