Exploration and production companies: 'TGP aimed at providing incentives'

Following the raising demand of natural gas in the country, the government is going to announce a Tight Gas Policy (TGP) 2011 by next month. This was stated by Azim Iqbal Siddiqui, Managing Director, Sui Southern Gas Company Limited (SSGC) at CNG Forum 2011 organised by All Pakistan CNG Association (APA) here at a local hotel the other day.
He said that Minister for Petroleum Dr Asim was striving to introduce TGP, 2011 with a better pricing structure to encourage investors to invest in gas sector. He said the TGP, 2011 is aimed at providing incentives like premium to exploration and production companies for drilling more to find tight gas reserves. Moreover, he said, the country has potential of 90 trillion cubic feet tight gas reserves, which would escalate the country's gas production by 50 per cent.
MD SSGC said the gas supply to KESC is presently 160 to 175 mmcfd while the company likely to sign an agreement with power utility regarding its outstanding dues of Rs25 billion.
He said all exploration and production companies are being persuaded to make all gas fields operative and added the company is planning to add 150 to 180 mmcfd more gas in its system before coming winter season.
Earlier, Shabbir Sulemanjee, chairman of APA Sindh zone said the industry is facing severe difficulties including gas load shedding, high gas tariff, exorbitant taxes, etc and urged the authorities concerned to take positive measures to facilitate the industry.
Central chairman of APA Junaid Makda said the CNG sector should also be taken on board while revising gas tariff and added the CNG tariff is not rationalised as the industry is being charged the highest tariff rate of Rs503.64 per mmbtu, whereas the industrial and captive power connections are being charged Rs382.37 per mmbtu.
He urged the government to allow duty free import of CNG compressor and its spare parts to encourage maintenance of plant and machinery.
Advisor to CM on Investment Zubair Motiwala, president Karachi Chamber and Commerce and Industry (KCCI) Saeed Shafi, chairman Byco Petroleum Pakistan Limited Kalim A. Siddiqui and others were also present on the occasion.