A Senate panel has stressed the need for allowing liquefied natural gas (LNG) import by private entities to make gas prices more competitive and affordable for consumers.
A meeting of the Senate Standing Committee on Petroleum, headed by Senator Mohammad Abdul Qadir, was held at the Parliament House on Friday.
Committee chairman recommended that officers of the Ministry of Energy (Petroleum Division) must reach out to international companies and encourage them to invest in Pakistan. Since 2015, he noted, the ministry had been purchasing LNG from only two to three bidders, despite the presence of numerous suppliers in the global market.
“LNG import permission to private entities can turn the price more competitive,” he said while pointing out that several government and private companies were not functioning due to minor disputes.
He asked the ministry to resolve the petty matters to achieve positive results for collective benefits.
Ministry of Energy (Petroleum Division) Secretary Mohsin Agha assured committee members that they were looking forward to drawing up a comprehensive plan and reviewing the policy, adding that improvement in results could be expected within a few weeks.
Members of the Senate panel discussed the suspension of gas supply to the industrial units in Sindh for two days a week, which was causing 28% production loss.
Read Govt to recover Rs232b for LNG
Energy ministry officials said that every year more than 10% of gas reserves were depleting at different fields while consumer demand was increasing day by day.
This year, Sui Southern Gas Company is receiving around 90 million cubic feet per day (mmcfd) less gas compared to last year.
The energy ministry secretary added that the decline in gas deposits had been continuing for the last 8 to 10 years but they were hoping for implementation of a comprehensive plan.
Committee members undertook a thorough analysis of gas supply and its depletion over the years, and recommended to the Ministry of Energy to address discrepancies.
Published in The Express Tribune, December 30th, 2023.
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