Sindh, Centre to review gas distribution policy

Sindh Chief Minister Syed Murad Ali Shah and Federal State Minister for Petroleum Musadik Malik have agreed to revisit the gas distribution policy to redress the grievances of the province that produces over 60 per cent of the country's natural gas.

This emerged in a meeting between Shah and Malik at the CM House on Thursday. The meeting was also attended by Provincial Energy Minister Imtiaz Shaikh, Federal Petroleum Secretary Capt (retd) Muhammad Mahoomd, Secretary to CM Raheem Shaikh, Provincial Energy Secretary Abu Bakar, Managing Director SSGC Imran Maniar, and on video link GD Gas Rasheed Johio.

The chief minister said that the total gas production of Pakistan stood at 3,358.21 MMCFD, of which Sindh contributes 62 to 63 per cent gas, or 2,100-2,200 MMCF. He added that the total demand of the province was 1,600-1,700 MMCFD.

Shah said that the province was being supplied 1,400-1,500 MMCFD to all consumers and still gas surplus from Sindh prediction stood at 600 to 700 MMCFD. He added that gas shortage in the province has not only badly affected the industrial sector, domestic consumers are being subjective to load-shedding even during the holy month of Ramazan.

CM Shah also pointed out that the provincial government has approved 1,000 village gasification schemes which were pending with SSGCL since 2010-11.

State Minister Malik said that the total production of gas has been recorded at 3,200 MMCFD, of which 200 MMCFD is consumed by the compressors operating at the field. "Out of the remaining 3,000 MMCFD gas, 1,400 MMCFD goes to the power and fertiliser sectors, and 1,600 MMCFD is supplied through pipes to the distribution companies," he disclosed.

To this, the chief minister said that we would have to revisit our distribution policy so that the gas-producing province could get its maximum share. The state minister agreed with the CM to revisit the distribution policy for which a committee was constituted to frame their respective proposals and discuss them in the next meeting.

Another issue the CM discussed with the visiting delegation, led by the state minister, was the Weighted Average Cost of Gas (WACOG) policy under which the imported LNG and local gas were pooled in the same energy box, and then a tariff is imposed. CM Shah said that the policy was unconstitutional and would further burden the consumers in Sindh and slowed the growth of economic activities.

The chief minister said that WACOG was not viable as long as Sindh has surplus gas. "Sindh preference to use gas in relation to other provinces is protected by Article 158 of the Constitution," he said and added that there should be zero load-shedding in the province as per the spirit of the Constitution.

Published in The Express Tribune, April 7^th, 2023.