SSGC admits LPG deal to impact supply

NA panel proposes shelving a plan to build a new gas storage plant

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ISLAMABAD:

Officials of the Sui Southern Gas Company (SSGC) on Thursday admitted in a parliamentary panel's meeting that its agreement with a private company for converting natural gas into the LPG might impact gas supply to its consumers.

During a meeting of the National Assembly Standing Committee on Petroleum — presided over by Mustafa Mahmood—committee member Shahid Ahmed noted that gas shortages already exist in the country and yet the SSGC is planning to sign a contract with Jamshoro Joint Venture Limited (JJVL).

SSGC officials confirmed that the contract would impact local gas supply. They informed the committee that the JJVL will convert gas into LPG and sell it to the private market.

The committee questioned whether this agreement would reduce Sui Southern's gas supply and sought full details of the JJVL agreement in the next meeting.

The parliamentary panel also raised questions with regard to deregulation of the petroleum sector.

Committee member Shahid Khan noted that Khyber Pakhtunkhwa (K-P) has abundant natural resources. He questioned whether a survey had been conducted regarding these natural reserves. The committee sought details about surveys for the next meeting.

During briefing on gas storage projects, officials said there is a need for gas storage facilities in the country. They said there was a plan to build a new gas storage project in the country.

However, the committee recommended shutting down the gas storage project, arguing that necessity should be evaluated first.

MNA Sardar Ghulam Abbas noted that earlier it was said that there were vast gold reserves in Balochistan. "Where are those reserves? First we must verify what exists and what does not," he added,

The committee also expressed concerns over the absence of the minister of state for petroleum in the meeting. The chairman noted that the secretary petroleum was abroad but the minister of petroleum should have attended the meeting.

Officials stated that a formula had been proposed by the Council of Common Interests (CCI) for petroleum sector deregulation and 35% of newly discovered gas can be sold to the private sector. They said efforts are underway to deregulate the petroleum sector.

MNA Asad Niazi questioned what will happen to the provinces if deregulation occurs. Petroleum officials responded that Sindh had raised this issue again in the CCI.