ISLAMABAD: Pakistan Energy Reforms Summit was addressed here on Tuesday by former Prime Minister of Pakistan/ Former Federal Minister for Petroleum Shahid Khaqan Abbasi, Minister for Power Khurram Dastgir, and Minister of State for Petroleum Dr Musadik Malik, DG HDIP Saeed Khan Jadoon, MD SNGPL, and other speakers.
The SNGPL’s managing director in his address discussed various strategies to implement the GoP reform agenda in respect of competition and regulation; market liberalization challenges and mitigation (focus on gas market).
He highlighted the role of federal government in formation of policies, oversight of Regulator (OGRA) and SNGPL obligations under the framework. He elaborated the overall transaction structure of SNGPL, indigenous/ RLNG gas supplies, consumers pricing and cross-subsidies structure originating from GOP socio-economic agenda.
The MD SNGPL reiterated its commitments to broad-based gas sector reforms while opening the same to the competitive private sector. He highlighted the key role that third parties can play in setting up of new terminals and import of RLNG to mitigate the current shortfall in demand-supply situation on a sustainable long-term basis.
The MD SNGPL was categorical that the company will no longer be acting a monopoly player and will be promoting a level playing field for all including itself. He highlighted that sector is in the process of being opened up in line with the GOP reform agenda to address the energy shortfall in the country in the shortest possible period. This will also mitigate the sharp decline in indigenous gas supplies in the country.
He highlighted that agreements with Third Party Terminal Operators are near execution after settlement of most outstanding issues. Third-party gas is already being transported by the SNGPL under the TPA regime for provision to individual consumers. These steps will contribute toward securing energy supplies for growing domestic demand at competitive prices. Enhancing competition in the market will also promote economic growth.
The MD SNGPL noted that the liberalization of the market is a gradual phenomenon, wherein, subsidies being extended to various sectors per GOP policy will also need to be addressed while protecting the interest of all the stakeholders.
He emphasized the use of renewable energy sources in the country which can effectively bring down the cost of energy in the country.
Currently, renewable energy accounts for less than one percent of our energy requirements.
Copyright Business Recorder, 2022