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Thursday March 28, 2024

Senate body for lifting moratorium on industrial gas connections

By Israr Khan
November 20, 2018

ISLAMABAD: A parliamentary committee has recommended to the government for lifting of moratorium on industrial and commercial gas connections and also asked for supplying gas to provinces according to their due constitutional rights.

The Senate Standing Committee on Petroleum that met here with Senator Mohsin Aziz in the chair said according to the Constitution of Pakistan [Article 158], gas priority shall be given to province in which gas is producing to fulfill its requirements and after it the surplus shall be given to other provinces.

Secretary petroleum and DG gas told the committee that the Punjab province producing 119MMCFD of gas, while it is being supplied 1782MMCFD of gas. KP producing 411MMCFD and getting 296MMCFD; Sindh produces 2320MMCFD and getting 1696MMCFD while Balochistan producing 467MMCFD of gas, while it is being provided 292MMCFD of gas.

Ministry of Petroleum Division Secretary Mian Asad Hayauddin said the cabinet was scheduled to discuss LNG issue on Tuesday (today). “The recommendations of the committee would be put in place in the agenda of the Cabinet for lifting of moratorium and right of the provinces for utilisation of gas according to production.”

The chairman said that the provinces should be given their constitutional rights, and after fulfilling the province needs, the surplus should be given to other provinces. He also said that for fulfilling the gas demand, with the domestic gas, imported RLNG is also being provided to consumers.

The committee was told that it is also the responsibility of the provinces to provide gas to the federal government. On which, Senator Aziz said that for KP’s energy project, the previous federal government had made commitment to provide the province 100MMCFD of gas; this commitment has not been fulfilled yet. It would be suitable to give this 100MMCFD of gas to KP’s consumers as the project has not been started so far.

The committee was also informed that in winters, KP’s gas consumption stands at range of 250 to 350MMCFD. Around 40MMCFD of gas is being provided to the strategic industry. Pakistan’s domestic gas production is 4170MMCFD and demand is 5,395MMCFD. Senator Dr Jehanzeb Jamaldini said that Balochistan is being supplied gas through air mix plants and it is only for two hours a day.

Since 2011, there is moratorium of the local gas connections to the industrial sector, so industry is being given connections of RLNG gas. KP Chamber of Commerce and Industries representative said that in Province , industrial sector is being supplied natural gas at the price of the imported RLNG. He said that for Industrial Estate, Jamrud Road, we have held a detailed meeting with the Provincial Minister Taimur Jhagra, and he has promised to give a dedicated pipeline for the industrial estate. For this purpose, an NOC has already been issued by the government.

The committee was informed that gas connections on Re-Gasified Liquefied Natural Gas (RLNG) were being provided across the area of franchise of SNGPL to the industrial and commercial users irrespective of gas producing areas or otherwise.

The managing director of SNGPL informed that presently there were about 4,215 industrial and 22,605 commercial consumers. The Senate body was apprised that on April 21, 2017, moratorium on new gas connections for industrial, commercial, captive consumers and load enhancement of existing consumers was relaxed on provision of RLNG.

The SNGPL managing director said 293 industrial, 213 captive and 1,622 commercial connections had been given connection through RLNG. He said the SNGPL had received about 2.4 million applications for the provision of domestic gas connections. During the last year, the SNGPL had provided 0.6 million connections while the Ogra had been requested to allow 0.6 million connections during the current year.

The Senate body was informed that there was no ban for the installation second gas meter in one home. The committee was apprised that survey for supply of gas to the village Bhatti Gujjar in district Chakwal had been carried out. On another point, the committee was told that SNGPL was providing gas connections to the applicants of Purani Abadi Shohan, Islamabad, whose applications had been submitted till January 31 this year. The meeting was attended by Lt Gen (R) Salahuddin Tirmizi, Saleem Zia, Shammim Afridi, Taj Muhammad Afridi, Dr Jehanzeb Jamaldini, Attaur Rheman and Bahramand Khan Tangi.