The Senate Standing Committee on Petroleum was told that there were more than seven hundred thousand illegal gas connections in Karachi only. The Sui Southern Gas Company Limited (SSGC) officials apprised the committee that a number of times, the concerned quarters were informed and the matter has been taken up at an appropriate level.
The committee chairman Senator Mohammad Abdul Qadir, who presided over the meeting, said that this is a serious issue and needs to be looked at. The committee directed the authorities to take all the stakeholders into confidence and launch an operation against the illegal connections.
Senator further remarked that the gas shortage has added to the miseries of the people and collaborated efforts are required to provide relief. He called upon all the stakeholders to provide input in enhancing production and take effective measures against illegal connections and theft. The committee chairman also highlighted the issue of irrational increase in gas bills in the winter season owing to change in price slabs and directed to rationalize them.
Senator Qadir inquired from Energy Minister Hammad Azhar whether industries can import gas by themselves. In reply, the minister said that Pakistan LNG Limited (PLL) gave tender notice last month but unfortunately not a single industry came forward. He explained that the imported gas costs $40 per mmBtu compared to $8/9 per mmBtu at which the government is providing gas. He added that the government is planning to give third parties access to terminals.
Senator Afnan Ullah Khan asked the minister about the present status of the compressed natural gas (CNG) sector in the country. The minister informed that a summary has been prepared to give third party access to CNG Association to import liquefied natural gas (LNG), which will be sent to the cabinet for approval in the coming weeks.
Discussing details of the contract of PLL with SNGPL for the supply of LNG, officials apprised the committee that 90 percent of this agreement has been finalized and will be concluded in one month. Officials of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) also briefed the committee about the decrease in line losses under UFG 3-year reduction plan.
Senator Mohsin Aziz raised the issue of the disconnection of gas supply to textile mills in Khyber Pakhtunkhwa without any prior notice. He said that this step of SNGPL is in violation of Article 158 of the constitution.
Senator Sarfaraz Ahmed Bugti informed the committee that up till now there is no gas in Sui. Senator Afnan Ullah Khan said that according to a Bloomberg report, Pakistan exports will decline due to the non-availability of gas to industrial sectors. In reply, the petroleum secretary said that owing to a decrease in domestic production and increase in demand government has to shut down the supply. It was government policy to cut off the gas supply to captive power plants due to circular debt of Rs. 1.3 trillion. But under the current situation, the ministry has given directives that textile mills can get gas supply after an efficiency audit.
The meeting was attended by Senators Afnan Ullah Khan, Mohsin Aziz, Prince Ahmed Omer Ahmedzai, Atta ur Rehman, Minister for Energy Hammad Azhar, secretary petroleum and other officials from SNGPL, SSGC, Oil and Gas Development Company Limited (OGDCL) and former Senator Saleem Saif Ullah Khan.
