ISLAMABAD: The government has budgeted Rs431 million for two gas companies (the Sui Northern Gas Pipeline Limited and the Sui Southern Gas Company) for the supply of gas to three special economic zones (SEZs) for the next financial year as part of the ongoing schemes for the Petroleum Division.
The government has yet to take a decision for up to 45 percent recommended hike in gas prices for the next financial year, 2022-23, for gas companies. Meanwhile government budgeted fresh allocation for the completion of these three schemes under the development programme.
These three major projects of supply of gas/ RLNG to special economic zones (SEZs) could not take place in 2021-22 despite, the allocation of Rs732 million to both gas companies- the SNGPL and the SSGC. Again Rs431 million have been allocated for next financial year. These are for supply of 10 mmcfd gas to Bostan SEZ, 13 mmcfd to Qasim Industrial Park SEZ, and 40 mmcfd to Allama Iqbal Industrial City SEZ.
The two state-owned companies are currently in process of executing at least six strategic projects to supply gas to the SEZs and industrial parks in their respective areas to give a boost to industrial production; however, financial positions of the gas companies are not allowing them to complete these projects in time.
The SNGPL is constructing a 12-kilometre pipeline to supply 30 Million Cubic Feet per Day (MMCFD) gas to Rashakai Special Economic Zone. The project was expected to be completed by the end of December 2021.
Similarly, a 20-km pipeline is being laid to provide gas to Allama Iqbal Industrial City Special Economic Zone, Faisalabad. However, to supply gas to Allama Iqbal Industrial City temporarily, a 2-Km main supply line had already been laid and commissioned by extending the existing network of M-3 Industrial City.
On the SSGC network, a 3.5-KM pipeline would be constructed for supplying gas to Bin Qasim Industrial Park, Karachi.
The company also got approval for laying an 8.7-KM pipeline to supply gas to Bostan SEZ, Balochistan.
Besides, SSGC is working to lay a pipeline to provide 13.5 MMCFD gas at the doorstep (Zero Point) of Dhabeji Special Economic Zone (SEZ) Sindh.
In Public Sector Development Programme (PSDP 2022-23) for Petroleum Division, the government has budgeted Rs1.48 billion for development projects of the Petroleum Division for the next financial year to complete ongoing schemes against the revised allocation of Rs1.881 billion in the current financial year 2021-22.
According to the PSDP, no new scheme was included for Petroleum Division for the next financial year programme. Original allocation in the current financial year was Rs3.86 billion; however, due to the lack of capacity to execute the development projects, the ministry surrendered Rs1.33 billion.
Copyright Business Recorder, 2022