Potential tussle: K-P refuses to share gas with provinces

Sources say K-P asked federal govt to provide 100% share of gas produced by it, for its power and industrial sectors.


Our Correspondent March 22, 2014
Sources say K-P asked federal govt to provide 100% share of gas produced by it, for its power and industrial sectors. PHOTO: FILE

ISLAMABAD:


Gas consumers in Punjab are unlikely to get relief in load shedding in upcoming summer as Khyber-Pakhtunkha – a gas producing province – has refused to provide its gas share to other provinces, mainly to Punjab – a move that is likely to land the provinces and the Centre into a tussle.


The K-P has also come up with a demand to cancel moratorium on gas connection to utilise its total gas share by providing it to domestic, industrial and power sectors. It has asked the government to set up priority within the domestic sector to provide gas connections and called for optimal gas load shedding in the province.

Sources said the K-P asked the federal government to provide 100% share of gas produced by it, for its power and industrial sectors.

After the 18th amendment, the gas producing provinces have the right to first meet their requirements before giving gas to other provinces and the K-P may demand to implement this right if the federal government refuses to fulfill its demands of enhancing gas shares. Under this amendment, the provinces have 50% ownership of their gas resources.

The K-P – getting 5% (175 million cubic feet per day) out of its 9.4% share – has demanded that it should also be provided the 4.4% balance gas share for which it does not currently have a use. The province has asked for 100mmcfd allocation in 2014 to set up gas turbine power plant by 2018.

Published in The Express Tribune, March 22nd, 2014.

COMMENTS (6)

shah | 10 years ago | Reply

KP has never received full hydropower royalties. That has led to this attitude over gas today. Punjab consumes resources from all over Pakistan and doesn't bother to pay any of them. You have to pay to get the wheat from Punjab though.

Akbar Khan | 10 years ago | Reply

Well done KPK government. Indeed it is the producers right to utilize it's produce first. This gas should be used to generate jobs, investment environment, cheaper energy for the province so that jobs start coming to KPK. Also the hydroprojects should be given priority for even cheaper energy production along with that energy hungry industries should be attracted with incentive. These steps will encourage KPK development and improve KPKians skill set.

May Allah bless you in your efforts.

VIEW MORE COMMENTS
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ