During the hearing on Friday, the petitioners’ counsel argued that as a matter of principle, the province producing natural gas shall have a preference over others when it came to sharing.
The petitioners include SITE Association, Federal B Area Trade and Industry Association, North Karachi Association of Trade and Industry and three garment, hosiery and extraction factories who cited the petroleum and natural resources ministry, Sui Southern Gas Company (SSGC), Karachi Electricity Supply Company (KESC), Oil and Gas Regulatory Authority (Ogra) and the Sindh chief secretary.
The court’s division bench raised a number of questions regarding the natural-gas sharing formula in terms of the place of production, preference and usage propriety.
Adjourning further proceedings till December 9, the bench directed the respective counsel to submit details and documents regarding the pre-1973 Constitution arrangement of natural gas sharing between the provinces.
The petitioners maintain that Sindh produces 71. 7 per cent of the total natural gas – which is mostly exported to other provinces – and the province’s consumption is about 33 per cent of the national produce.
Impugning the notification and announcements made by the respondents for the gas cut by SSGC and rolling blackouts by KESC, they maintained that the government, besides raising tariffs, also withdrew the subsidy on fuel surcharge adjustment and the tariff differential subsidy. This decision passed on the entire cost burden on industrialists and factory owners who are forced to run generators, the counsel contended.
The petitioners appealed to declare that the petroleum and natural resources ministry and SSGC acted in violation of Article 158 of the Constitution by reducing gas supply to Sindh and diverting the gas to other provinces before meeting the requirement of Sindh.
They also requested that SSGC should supply the 276 million cubic feet per day of gas to KESC enabling it to supply uninterrupted power to the industries.
Published in The Express Tribune, November 13th, 2010.
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