Federal minister, Sindh CM agree to revisit gas distribution policy

KARACHI: Sindh Chief Minister Syed Murad Ali Shah and Federal State Minister for Petroleum Musadik Malik have agreed to revisit the gas distribution policy to redress the grievances of the province that produces over 60 percent of the national gas. This emerged at a meeting held between the two here at CM House on Thursday. The meeting was attended by Provincial Energy Minister Imtiaz Shaikh, Federal Petroleum Secretary Capt Muhammad Mahmood (retd), Secretary to CM Raheem Shaikh, Provincial Energy Secretary Abu Bakar, Managing Director SSGC Imran Maniar, and on video link GD Gas Rasheed Johio.

The chief minister during his discussion with the federal state minister said the total gas production of Pakistan stood at 3,358.21 MMCFD, of which Sindh contributed/produced 62 to 63 percent gas or 2100-2200 MMCF. He added that the total demand of the province was 1600-1700 MMCFD.

Shah said the province was being supplied 1400-1500 MMCFD to all consumers and still gas surplus from Sindh prediction stood at 600 to 700 MMCFD. He added that the gas shortage in the province had not only affected the industrial sector badly, but load-shedding was being resorted for domestic consumers even during the holy month of Ramzan.

Murad Shah also pointed out that the provincial government had approved 1,000 village gasification schemes which were pending with SSGCL since 2010-11.

State Minister Malik said the total production of gas had been recorded at 3200 MMCFD, of which 200 MMCFD was consumed by the compressors operating at the field. “Out of the remaining 3000 MMCFD gas, 1400 MMCFD goes to the power and fertilizer sectors and 1600 MMCFD is supplied through pipes to the distribution companies,” he disclosed.

At this, the CM said that “we would have to revisit our distribution policy so that the gas-producing province could get its maximum share. The state minister agreed with the CM to revisit the distribution policy for which a committee was constituted to frame their respective proposals and discuss them in the next meeting.

Another issue the CM discussed with the visiting delegation led by State Minister was the Weighted Average Cost of Gas (WACOG) policy under which the imported LNG and Local gas were pooled in the same energy box, and then a tariff is imposed.