SHC directs ministry to submit agreement on gas export from Sindh

KARACHI: The Sindh High Court (SHC) on Tuesday directed the Ministry of Petroleum to place any agreement or direction made by the federal government to the Sindh government with regard to loadshedding and exporting 15 percent of gas out of the province.

Reports said the direction had come on the petition with regard to lack of provision of welfare funds for the people of the oil and gas exploration areas and non-implementation of the Supreme Court’s orders. The SHC’s division bench, headed by Justice Muhammad Karim Khan Agha, observed that 15 percent of the gas being produced from Sindh, prima facie in violation of Article-158 of the Constitution, was being exported to other provinces, despite of the gas loadshedding in Sindh. The court directed the Ministry of Petroleum to place any direction or agreement given or made by the federal government to Sindh government to export gas from Sindh.

The court also directed secretary energy to provide any agreement or permission, whereby the Sindh government has agreed to export gas to any other part of the country. It also directed the head of Sui Southern Gas Company (SSGC) to submit any order or document, which he has received, directing him to export gas out of the province. Regarding gasification of the villages near gas fields, the director general Petroleum and others have submitted their replies, saying that on pursuant of the court orders, the required funds relating to the second phase of Rs747.539 million has now been approved by the competent authority and would be received by the SSGC within 7 to 10 days so that they may continue to work on the project of gasification of the villages.

The court also directed the MD SSGC to file the report, stating whether or not the funds have been received. The court made it clear that the entire amount which has been agreed as per schedule should be paid by the federal government to the SSGC. The court observed that the conduct of secretary finance and secretary petroleum had apparently designed to defeat even their own agreed schedule of work by deliberately not paying the amount, which they agreed before the Supreme Court. The court observed that the payment has been made nine months late, and the conduct on their part was highly deprecate by the court.

The court observed that in case the federal government has not paid the amount, the court would reinitiate the contempt of court proceedings against secretary finance and secretary petroleum. It had earlier directed the federal government to pay Sui Southern Gas Company an amount of Rs4.912 billion so that it could ensure supply of gas to all the surrounding localities/villages, falling within the radius of 5 kilometers of all gas fields. The court had directed the federal government to submit comments with regard to responsibility of federal and provincial governments to ensure that gas has been provided to all villages falling within the 5 kilometer radius.