The Sui-Northern Gas Pipeline (SNGPL) Company has laid 15,200 kilometers' pipelines during three years 2008-11 against a total planned network of 25,640 kilometers. According to official documents available with Business Recorder, the company has completed 1,682 schemes so far, while work is in progress on 1,110 schemes.
The company is also procuring engineering drawings and material for an additional 458 schemes. On completion of these schemes, approximately 11 million people would have access to cheap and environment friendly fuel. During the past three years 2008-11 SNGPL has supplied gas to 5 District Headquarters (DHQs) Bahawalnagar, Bhakkar, Narowal, D.G. Khan and Hangu. In addition to the above five DHQs, it has supplied gas to 14 Tehsil Headquarters (THQs), 38 new towns and 955 new villages.
While SNGPL's 2,189 schemes worth Rs 32.710 billion received from March 2008 to date under PWP-II. 16,100 kilometers of supply network were required. 1,061 schemes worth Rs 7.513 billion have been transferred to sitting parliamentarians from KPP-II involving 9,540 km network to be laid for their completion.
The above 3,250 schemes worth Rs 40.22 billion required SNGPL to bear the cost of Rs 27.187 billion whereas an amount of Rs 13.036 billion has been allocated by GOP. The SNGPL's per annum capacity is to lay up to 5,000 kilometers of pipeline. Keeping in view the above circumstances, the workable option is to undertake the projects in phases so that job is undertaken in maximum number of constituencies simultaneously to satisfy the parliamentarians.
Company's strategy is to first lay the supply main network and provide gas to the village/locality by laying partial distribution networks. When a large number of schemes in one constituency are approved, a certain number of schemes prioritised by the concerned Parliamentarians are executed at one time leaving rest of the schemes in queue.
SNGPL has planned to complete the remaining work in hand within 2-3 years. However, while determining SNGPL's Revenue Requirement for 2011-12, OGRA has pended the distribution development budget till the company ensures that commensurate additional gas is injected to the system.
While approving revenue requirement for FY 2010-11 OGRA provisionally allowed the new development phases subject to availability of additional gas supply and continuous and reliable supply to the existing consumers. Since no additional gas became available in 2010-11, OGRA will not allow capitalisation against the development carried out during the year 2010-11. Financial crunch is not allowing the company to bear the cost within criteria against the approved projects.
There is a huge gap between demand and supply of gas. Gas supply to industrial, CNG and Fertiliser sector is being curtailed in order to ensure continuous supply to domestic sector.