National weighted average cost of gas: TMA KP voices its opposition to ‘extra burden’ on gas-producing provinces

PESHAWAR: Chairman Khyber Pakhtunkhwa Textile Mills Association (KP-TMA), Salim Saifullah Khan has called for putting no extra burden on the gas producing provinces on account of National Weighted Average Cost of Gas.

In a statement issued here on Sunday, he said that KP-TMA has written letters to Muhammad Sadiq Sanjrani, Chairman Senate of Pakistan, Asad Qaiser, Speaker National Assembly, Mahmood Khan, Chief Minister Khyber Pakhtunkhwa and Chief Secretary Khyber Pakhtunkhwa with a copy to Secretary of Council of Common Interests (CCI) to divert their attention towards the dilemma with gas producing provinces in the pretext of weighted average cost of gas.

He said that the government is planning to pass a bill from the parliament introducing an average national basket prices for natural gas i.e. Weighted Average Cost of Gas (WACOG) by moving away from ring-fenced pricing and supply of local gas and imported liquefied natural gas (LNG) to various consumer categories meaning thereby to create appetite for RLNG as rationalization of consumer gas prices in the country.

In the letters KP-TMA has urged that Khyber Pakhtunkhwa is a net gas producing province and producing 369 MMCFD of natural gas. In addition to 369 MMCFD of gas about 150 MMCFD of natural gas has been discovered in the Wali Field of District Lakki Marwat and some other fields of Khyber Pakhtunkhwa, whereas total gas consumed by the province is not more than 240 MMCFD inclusive of only 40 MMCFD of natural gas consumed by industries located in the province.

In his above referred letters, Salim Saifullah Khan quoted that under Article 158 of the Constitution of the Islamic Republic of Pakistan which clearly states that “the Province in which a well-head of natural gas is situated shall have precedence over other parts of Pakistan in meeting the requirements from that well head.”

And as per the Article 158, it is the ultimate right of the province to receive the gas on cheaper rate as the gas producing provinces does not needs any RLNG for their use because they are self sufficient and net producers.

Salim Saifullah Khan further added that they are not agreed with the Government’s policy of WACOG. He requested the authorities to look into the matter and protect the right of the surplus gas producing provinces. Government is introducing a bill in the parliament for weighted average cost of gas wherein all the prices will be based on average cost of gas i.e. average cost of natural gas plus imported gas, which is against the Constitution of Pakistan and also not in the interest net gas producing provinces as from this bill only province of Punjab who is the most gas consuming province with no natural gas resources, will be benefited.

Copyright Business Recorder, 2022