NA body gives priority to CNG stations over industry

Gas supply to bigwigs in industrial sector ordered to be disconnected.

ISLAMABAD:

A parliamentary panel snubbed the petroleum ministry’s proposal of completely disconnecting gas to CNG stations and continuing gas supply to some bigwigs in the industrial sector.

National Assembly Standing Committee on Petroleum and Natural Resources on Thursday took serious notice of continuation of gas supply to over 2,100 industrial units out of total 4,200 units.

The committee noted that a complete disconnection of gas to CNG stations would disrupt law and order situation across the country. In case of complete shut down of CNG stations, the ministry may confront some legal issue also, parliamentary penal noted.

At present, Sui Northern Gas Pipelines Limited (SNGPL) is facing 547 million cubic feet per day (MMCFD) gas shortfall while it was still providing gas supply 550 MMCFD to the industrial sector. The committee directed SNGPL to stop supply of gas to these industrial units because they already agreed with the government that during this peak time of winter season they would arrange alternative fuel.

The committee was informed that there were about 4,200 industrial units running on gas, of which 2,060 industrial units were disconnected while the remaining would face suspension from January 1, 2012.

SNGPL is also facing 72 MMCFD gas theft, the committee informed. The committee said that strict action should be taken against gas theft and and also against SNGPL employees involved in gas theft.

Federal Minister for Petroleum and Natural Resources Dr Asim Hussain informed the committee that gas theft was mostly carried out in the CNG sector that offered 50% discount to consumers.

The committee was informed that total availability of gas was 4,000 million cubic feet per day (MMCFD) while demand is 6,200 MMCFD.

Hussain warned the committee that the system would collapse if proper action was not taken to address the gas problem.

To a question, SNGPL MD Arif Hameed said that one per cent gas theft was recovered since he became MD, which is worth Rs1.9 billion. He assured to bring down gas theft further from the current 9 per cent.

Member committee Barjees Tahir questioned why any action was not taken against those SNGPL officials, who allowed the establishment of 500 CNG station since 2008 despite a ban on set up of new CNG stations.

The committee was informed that an inquiry was already in progress and responsible officials would be taken to task.

SNGPL MD said several officials were dismissed and inquiry against others was in progress over malpractice.

The committee was also informed that the government was providing Rs45 billion cross subsidy on gas to fertiliser and domestic sectors, on this members questioned why fertiliser prices were touching the roof despite cross subsidy.

Published in The Express Tribune, December 30^th, 2011.