Gasification within 5km radius: PD to resolve decades-old issue in stakeholders meeting
ISLAMABAD: The Petroleum Division is set to convene a meeting of all relevant stakeholders to resolve the decades-old issue of gas supply to localities falling within a five-kilometer radius of gas fields, in line with the Prime Minister’s directives and binding orders of the Supreme Court of Pakistan.
This assurance was given by Secretary Petroleum Abdul Hamid Shaikh during a meeting of a Senate panel chaired by Senator Jam Saifullah Khan.
“This is a Prime Minister’s directive as well as a Supreme Court decision. The issue must be resolved. Give me two weeks to understand the matter and prepare recommendations,” the Secretary told the panel.
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In 2008, the Economic Coordination Committee (ECC) of the Cabinet approved revised per-consumer cost criteria for gas provision: Rs5,400 for Punjab and Sindh, Rs108,000 for Khyber Pakhtunkhwa, and Rs 270,000 for Balochistan. Gas utility companies have since undertaken development schemes based on these benchmarks, while costs exceeding the approved limits were previously financed through the federal government’s Public Sector Development Programme (PSDP) under Prime Ministerial directives.
However, the federal government discontinued block allocations for gas development schemes in PSDP 2013-14, adversely affecting the pace of expansion.
In its judgment dated December 27, 2013, the Supreme Court directed the Ministry of Petroleum and Natural Resources to ensure implementation of the Prime Minister’s directive of September 15, 2003, which mandated provision of gas, on a priority basis, to all villages and localities within a five-kilometer radius of gas fields across the country.
To comply with the court’s orders, Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) were instructed to conduct detailed surveys in FY2020-21 to identify unserved villages within the specified radius. Both companies subsequently developed phased gasification plans.
SSGCL prepared eight phases with a total estimated cost of Rs5.946 billion, of which Rs5.017 billion was to be funded by the government. While funding was provided for four phases up to FY2025, no allocation was made in PSDP FY2026.
Similarly, SNGPL devised six phases costing Rs5.544 billion, with a government share of Rs3.908 billion. However, only Rs100 million was allocated, resulting in virtually no progress.
Gasification under the five-kilometer policy is exempt from the moratorium on expansion of the gas pipeline network. However, due to the absence of PSDP funding and lack of future commitments, it has been proposed that provinces may finance these schemes through their own budgetary allocations.
During the meeting, the Director General (Gas) of the Petroleum Division and representatives of SNGPL and SSGCL briefed the panel on completed and pending schemes.
The Senate panel expressed concern that the issue has remained unresolved for over 23 years and urged oil and gas companies to comply with the directives of the Prime Minister and the Supreme Court.
Senator Jam Saifullah Khan proposed a meeting of all concerned stakeholders including gas companies, OGRA, Finance Ministry, Planning Ministry and provincial governments to prepare viable recommendations for the Prime Minister Office and Supreme Court of Pakistan.
A representative from the Ministry of Planning, Development and Special Initiatives noted that, in the absence of PSDP funding, the Finance Ministry should be invited to the next meeting to clarify its position on financing these schemes.
The panel’s convener also suggested that oil and gas companies should share the financial burden alongside the government to fulfill commitments made to communities living within five kilometers of gas fields.
Managing Director of OGDCL, Ahmed Hayat Lak, assured the panel that the organisation would extend full cooperation in accordance with the policy.
During the meeting, Senator Hidayatullah Khan proposed that the concerned institutions formally write to Deputy Commissioners of all relevant districts to verify whether villages located within five kilometers of gas-producing fields have actually been provided with gas. He noted that such verification would provide accurate and practical information for informed decision-making.
Concluding the meeting, the Convener stated that the Ministries of Finance, Planning and Petroleum, along with the gas utility companies and all other concerned organisations, would jointly develop an effective mechanism to ensure full implementation of the Prime Minister’s directive and the Supreme Court’s judgment, while guaranteeing gas supply to deserving local communities. He also directed OGDCL, PPL, SSGCL, SNGPL, Mari Energies, and all other relevant organisations to extend their full cooperation with the Committee in resolving this long-pending issue.
Copyright Business Recorder, 2026