WB offers equipment, technical assistance to control gas leak

A team of the WB is offering equipment and technical support to control the Rs7.5 billion per annum gas losses.

KARACHI: A team of the World Bank is offering equipment and technical support to control the Rs7.5 billion per annum losses from leakages and gas theft in Pakistan. They also say that the World Bank is considering giving $250 million to help in this regard.

This was discussed during a meeting of the World Bank team with officials of Sui Southern Gas Company, Sui Northern Gas Pipelines and Pakistan Standard and Quality Control Authority overseeing the standard of gas pipes and instruments in the country.

An official of the bank stated that the organisation was keen to assist the Pakistan Standard and Quality Control Authority (PSQCA) with standardisation and quality control in the country.

The meeting was held at PSQCA head office between Irfan Nadeem, Director General PSQCA and Bjorn Hamso of World Bank.

The rate of Unaccounted-For-Gas (UFG) of Sui Northern and Sui Southern have reached 8.1 and 8 per cent respectively against the rate of 5.15 set by Oil and Gas Regulatory Authority (Ogra) which could cause the country losses worth Rs4.6 billion and Rs2.8 billion for the current year 2009-10. The use of worn out pipe for gas distribution in Pakistan is causing a surge in gas leak causing is the main reason for these losses.

World Bank stresses the use of good quality pipelines and asks Pakistan to avoid using sub standard gas instruments at a domestic and commercial level so that gas wastage can be curbed.

The collaboration between the bank and Pakistan will help improve PSQCA experience in promoting gas appliances specially testing facilities related to thermal efficiency. Their meeting will help overcome the trade barriers relating to gas appliances companies and PSQCA National standards body.

The National Standards Body and World Bank have agreed to ink a Mutual Recognition Agreement (MRA).  The PSQCA has further requested that the World Bank provide necessary technical assistance in respect of trainings and laboratory equipment as well. The modalities in this regard with Gas Appliances companies are agreed to be expeditiously worked out to be assessed by PSQCA.

Earlier the World Bank offered Sui Southern Gas Company $115 million to improve its infrastructure and increase its utilization efficiency. This was offered after the Ministry for Petroleum and Natural resources sought the World Bank Energy Mission’s assistance in reducing UFG losses by optimizing supply pressure, rehabilitating pipelines and curbing theft. Under the UFG programme, 3,350 kilometres of pipeline will be replaced.

Published in The Express Tribune, June 24^th, 2010.