Sluggish progress on gas fields draws ire

GIDC arrears reach Rs445 billion, Senate panel informed

ISLAMABAD:

The Senate Standing Committee on Petroleum was informed on Monday that although work was underway on the Jandran gas field since 1975, the efforts were yet to yield fruits as various security and political constraints were impeding it.

It was apprised that the extraction from the three oil and gas reserves in Balochistan will kick off within the period of 18 months but certain political and security factors were impeding the efforts.

The committee, held under the chairmanship of Senator Mohammad Abdul Qadir, was briefed on the status of the gas reserves by the secretary of petroleum who told the panel that although the work was underway, the efforts had yet to yield fruits.

The committee noted with concern the sluggish progress with regard to Jandran, Saruna and Jhal Magsi gas fields.

Managing Director Oil and Gas Distribution Company Limited (OGDCL) Zahid Mir told the committee that four wells had been dug at the Jandran gas field and a feasibility report will be furnished in March.

He added that pipeline construction will begin by the end of April while the supply of 85 MMCFD gas from Jandran will begin this summer.

Meanwhile, the committee was also updated about the matter of the outstanding amount of Cess recoveries from various entities and discussed the Gas Infrastructure Development Cess (GIDC) cases.

The chairman noted that Rs445 billion was due from various institutions and urged to expedite recoveries in this regard.

Secretary petroleum informed that a committee has been formed under the chairmanship of the finance minister to address the matter and that a meeting was also held in this regard.

It was told that the fertiliser sector consumed over 20% of the country's total gas.

The chairman of the committee interjected here and observed that the government should rather provide cheap gas to the farmer instead of factories.

The secretary said that the petroleum division was of the view that all the gas should be used to generate electricity.

“We are not being listened to. The industry people wield much power and rather go and talk to the government directly to get their things done,” he bemoaned.

He went on to suggest that the power plants would be able to generate electricity at 70% cheaper prices if natural gasses were provided.

“This is the best way practised all over the world, whereas here, we are giving gas to domestic consumers,” he added.

The standing committee later sought details from the ministry of petroleum to take forward the proposal.