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Centre feels let down by two provinces in gas theft drive

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LAHORE: The federal government is not happy with Sindh and Balochistan governments over their lack of cooperation in proceeding against gas thieves which, it considers, are stealing the natural resource on a large scale which can better be supplied to industry and domestic consumers.

The low pressure of gas, especially in Punjab, will be improved only after the culmination of winter. But this situation is not likely to be repeated next winter because of the expected import of LNG (liquefied natural gas) before the end of the current year, said Petroleum and Natural Resources Minister Shahid Khaqan Abbasi.

Talking to Dawn on Sunday, the minister expressed displeasure over non-cooperation of Sindh and Balochistan governments for not launching a crackdown on gas thieves and appreciated Punjab and KP governments for providing support to the Centre in detecting a number of gas-theft cases.

“Since efforts are underway to capture all gas thieves in an on-going drive against them across the country, unfortunately the centre is getting a limited support from Sindh and Balochistan governments.

However, efforts have been unprecedented in Punjab while the KP government is also assisting us in detecting gas theft cases,” the minister said.

About a massive gas loadshedding for domestic consumers in Punjab these days, he said the issue was a Punjab-specific due to substantially increased demand in the winters and the limited allocation of gas owing to Article-158 of the Constitution.

“The only solution is to increase gas supply, which in the short-term, is possible through importing gas. “We are working on various gas import projects and hope that the LNG will be imported before the end of this year,” he said.

Regarding the implementation of the proposal floated by the SNGPL to charge Rs25,000 from domestic consumers on urgent gas connections, Mr Abbasi said the Oil and Gas Regulatory Authority (Ogra) was working on the proposal.

Keeping in view the Ogra’s public hearing held on Jan 15 in this regard, he said the SNGPL should be able to implement the scheme by Feb 1, 2014. “Since we have introduced the scheme to eliminate the culture of ‘sifarish’ (reference) by providing gas connection on a first-come, first-served basis, the people should appreciate the government strategy,” he said.

When asked if the government planned to either phase out or retain the CNG sector in future to provide uninterrupted gas supply to domestic consumers and the industry, Mr Abbasi said the CNG sector had been told in clear terms that its future was based on the import price-based gas supply, lower price of gas to domestic consumers and on other important uses, such as gas supply to the industry.

“That is why the sector is currently working out to establish infrastructure for the LNG-based filling stations,” he said.

About government’s priority for providing uninterrupted gas supply to textile, fertilizers and other industry, he said the government was seriously working out to resolve the issue.

He said since the government believed that the gas shortage in the country was due to corruption and lack of planning during the last 15 years, it had incentivized gas production.

“Pipeline imports are being pursued for medium term-relief; IP (Iran-Pakistan) gas pipeline project has currently implementation constraints due to international sanctions, and the TAPI (Turkmenistan–Afghanistan–Pakistan–India Pipeline) project is scheduled to provide gas in late 2017 or early 2018,” he said.

In the present circumstances, he said the crisis could only be alleviated through LNG-based import. That was why the government was targeting 2BCFD of LNG-based import (equal to 50 per cent of the total current domestic gas production), he said.

“We are hopeful that Pakistan will be able to achieve a surplus gas situation during the tenure of the present government,” the minister claimed.


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