Karachi, A meeting of the Senate Standing Committee on Petroleum, chaired by Senator Mohammad Abdul Qadir, was held at Parliament House on Wednesday. The committee focused on several critical issues, including the urea shortfall in the country and challenges in the gas sector.
According to Senate of Pakistan, Abdul Rasheed Jokhi, DG Gas, highlighted that Pakistan’s daily gas consumption stands at 4000 mm cfd, while the production is only 3000 mm cfd. Local consumers use 950 mm cfd, and fertilizer companies, specifically FFC and Engro, consume almost 750 mm cfd. Marri Petroleum provides about 85% of this gas, with the rest coming from other companies. Senator Abdul Qadir expressed concern that despite receiving gas at subsidized rates, fertilizer companies have not adequately addressed the urea and DAP shortfall. He requested detailed information on the fertilizer production against the gas provided.
Senator Abdul Qadir also underscored the energy crisis as a critical challenge, leading to a $32 billion import bill. He urged the ministry to expedite work on newly discovered sites to alleviate this crisis.
The committee discussed the issue of gas tariffs, especially in Balochistan. DG Gas clarified that the same tariff rates are applied nationwide, but consumers in colder regions face higher bills in winter due to increased gas usage. Senator Abdul Qadir recommended that gas rates should be relaxed for consumers in these colder areas during winter.
Addressing the recent news about an increase in gas tariffs, DG Gas assured that tariffs for local consumers in the protected category have not been raised, which includes almost 57% of total consumers.
The committee reviewed plans to settle the circular debt of PSO, SSGG, SNGPL, and OGDCL. The current circular debt in the oil and gas sector stands at Rs. 2800 Billion, with Rs. 2080 Billion as the principal amount. The recent tariff hike is expected to maintain the circular debt level but will not reduce it.
Additionally, the pricing of indigenous gas for different sectors was discussed. Senator Mohsin Aziz pointed out that although Khyber Pakhtunkhwa and Balochistan are major gas producers, much of their gas is used in Punjab. There’s also a disparity in gas pricing between these regions. Senator Abdul Qadir emphasized the need for a formal policy on LNG imports and private party involvement to meet local demands.
The committee was informed about the adoption of its recommendations and that a detailed report would be submitted upon completion.
Furthermore, the committee addressed gas load shedding in Abdullah Gabol Goth, where a new pipeline is expected to resolve low-pressure issues. It also touched upon the regularization of employees working in the SUR Range Project of Pakistan Minerals Development Corporation, which is currently sub judice.
The meeting was attended by Senators Saadia Abbasi, Fida Muhammad, Mohsin Aziz, Special Secretary for Petroleum Division Bushra Aman, Chairman OGRA Masroor Khan, DG Gas Abdul Rasheed Jokhi, and other senior officials.