CCI may allow companies to sell 50pc gas to private sector

ISLAMABAD: The Council of Common Interests (CCI) that is set to meet here on Monday (tomorrow) would take up exploration and production policy allowing the exploration and production companies -- OGDCL, PPL, GHPL, Mari gas, and foreign companies -- to directly sell 50 percent of gas to the private sector and 50 percent to state-owned gas companies.

The forum will also take up for approval the tight gas policy under which 500mmcfd to 1bcfd gas will be explored in two to three years period.

“The private sector will use the transmission and distribution system of Sui Gas companies to sell the gas to their clients. This initiative will help reduce the liquidity crisis of exploration and production companies as their circular debt has increased to Rs1.273 trillion because of non-payments by Sui Gas companies for decades. Due to non-payments, many international companies have left the country,” senior officials at the Energy Ministry told The News.

Earlier, the state-owned exploration and production companies were bound to give 90 percent gas to Sui Gas companies -- Sui Southern and Sui Northern -- and 10 percent to the private sector. The 10 percent gas was negligible which is why no reasonable private sector in the past purchased it.