Gas theft drains Rs30 billion yearly, NA panel told

Losses passed on to consumers, industrial theft alleged

ISLAMABAD:

A parliamentary panel was informed on Friday that gas theft and system inefficiencies were causing annual losses of up to Rs30 billion in the country's gas sector, with lawmakers warning that the financial burden was ultimately being transferred to consumers.

The disclosure came during a meeting of the National Assembly Standing Committee on Energy chaired by Syed Mustafa Mahmood, where gas officials briefed the committee that Sui Northern Gas Pipelines Limited was incurring losses amounting to Rs30 billion due to theft and operational inefficiencies.

MNA Gul Asghar Khan said that the losses were being passed on to consumers, alleging that industrial units were involved in gas theft while the financial impact was recovered from domestic users.

Officials added that losses up to the threshold determined by OGRA were also transferred to consumers, noting that even in developed systems, Unaccounted for Gas (UFG) losses could reach up to 6 per cent.

They further informed the committee that gas theft in Sui Southern Gas Company exceeded 10 per cent, amounting to approximately 30 billion cubic feet (BCF) annually, with total yearly losses from theft and inefficiencies also estimated at Rs30 billion.

Separately, the National Assembly's Subcommittee on Energy, chaired by Babar Nawaz Khan, was informed that the business plan of Hyderabad Electric Supply Company (HESCO) would be submitted to NEPRA before April.

The committee convener noted that the prime minister had written to PESCO regarding the establishment of a 132kV grid station at a site that previously served as a central node connecting 14 feeders.

It was further stated that the transmission line had been extended without causing damage to any residential population. However, the grid station was subsequently relocated to another site.

The convener alleged that the relocation had been carried out to serve the personal interests of certain individuals. Power Division officials informed the committee that a report explaining the reasons for the grid station's relocation would be presented, while the convener directed that a detailed report be submitted before the subcommittee's third meeting.

During the meeting, the issue of energy training funds accumulated by petroleum companies also came under discussion.

Committee member Syed Naveed Qamar observed that the funds had not been utilised for the purposes for which they were collected, attributing the lapse to the absence of effective policymaking.