WB, Pakistan sign $200m deal for gas efficiency project
The financing agreement was signed by Economic Affairs Division Secretary Dr Waqar Masood Khan and WB Country Director Rachid Benmessaoud; while the project agreement was signed by Benmessaoud and Sui Southern Gas Company Limited (SSGC) Company Secretary Yusuf J Ansari.
The project will be implemented by SSGC and aims to enhance the supply of natural gas in Pakistan by reducing physical and commercial losses in the pipeline system and improving the operational capacity of SSGC. The project will help reduce un-accounted for gas in the gas distribution system by ensuring system segmentation and pressure management, pipe replacement and repair, cathodic protection, and advanced metering systems.
Another component of the project is the Appliance Efficiency Pilot Project, which will finance modern, energy-efficient gas appliances, and also retrofit appliance components for residential consumers in a pilot project. A third component of the project involves technical assistance to SSGC for improvements in its organisational capacity, customer orientation, and project management.
The project will primarily be implemented in Sindh and Balochistan, which have the highest incidence of gas theft. Under the project, a 5,750 kilometre long pipeline will be repaired in order to prevent leakages. The pipeline will also be installed with sophisticated monitoring equipment to reduce the incidence of theft.
The project will be completed by June 2017, and on completion will help increase the supply of gas to consumers, maintain adequate gas pressure, ensure better service delivery and improve SSGC’s efficiency. In addition, the project will help curtail emission of greenhouse gases through avoidance of direct methane gas leakages into the atmosphere.
Speaking on the occasion, Dr Masood said the project will enhance overall performance of SSGC in gas distribution and help mitigate energy problems in the country. In his remarks, Benmessaoud assured the SSGC of World Bank’s full support in implementing the project, while Ansari thanked the government and the World Bank for providing the assistance.
Published in The Express Tribune, June 6th, 2012.
COMMENTS (2)
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I am not sure if we have problem at supply, we certainly have a problem in how we use our gas. That needs to be addressed. All domestic boilers used in Pakistan are low effcient use with very basic design that may be wasting more than 70% of the gas energy. These should be scrapped and repalced with High Efficiency boilers, Govt can run a scrappage scheme to replace existing ones.
Secondly, CNG is also like subsidizing car-rich to use cheaper fuel. LPG should only be used for vehicles. Gas should be used for industry and domestic use.
Its about time Pakistan needs to set some standards on efficiency of the appliances, insulation for houses and building controls. This will improve energey use.
did we strike a deal with US? who else will give free money in a black pit? 90% of this fund will be wasted through corruption and diverted to defense sector. Who is checking actual implementation on ground? Why should taxpayers bear this loan when only beneficiaries are the politicians and agencies.