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.

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.
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