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Centre to discuss matter pertaining to gas distribution among provinces in CCI

  • August 13, 2020

Islamabad-The federal government will take the matter pertaining to the gas distribution among the provinces to the CCI as the senators have blamed the government for violation of Article 158 and 172 of the constitution. The senate standing committee on petroleum that met with Senator Mohsin Aziz in chair discussed the matter pertaining to the distribution of gas among the provinces.

Federal minister for energy Omer Ayub told the committee that gas load shedding will continue during the upcoming winter season as the production of indigenous gas is decreasing while the demand is increasing. He said that out of total gas of Sindh, the province is using 1.56 BCFD gas. Only 260 MMCFD gas of Sindh is being provided to Punjab, he added. Omer Ayub said that all the provinces have to make a joint decision on the issue of gas shortage. The minister for energy said that against the total indigenous production of 3.5 BCFD the total demand is 7 BCFD. The deficit between supply and demand is filled with expensive imported gas, he said adding that government is providing subsidy on the imported gas which is increasing the circular debt. From next year onward, Sindh will have no surplus gas to provide to other provinces as the province will not be able to meet its demand from its production.

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He said that the government will hold a conference on the issue of gas distribution and all the provincial chief ministers will attend it. The forum will evolve a joint stand on the issue of gas distribution and its recommendations will be submitted to the CCI, he added. Omer Ayub said that the federal government will take the matter pertaining to the gas distribution to the CCI. Senator Sussi Paleejo said, in winter season, Article 158 and 172 of the constitution is being violated as Sindh which is providing gas to the entire Pakistan is facing gas shortage in the season. She said that any unconstitutional act regarding the distribution of gas will be resisted. She said that there should be no issue of interpretation of the 18th amendment and the federal government should provide representation to the provinces in Ogra, PPL board and all other such institutions.

Mir Kabeer Shahi said that the non-provision of gas to the residents of the gas producing areas of Balochistan, Sindh and KP will create sense of deprivation among those people. Mir Kabeer Shahi said that articles 158 and 172 of the constitution regarding the gas distribution is not being implemented

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Senator Quart-ul-Ain Marri said that there is huge difference between the information provided by the provinces and federal government regarding gas production and distribution. The committee also discussed the matter related to halting of gas supply by Sui Southern Gas Company (SSGC) after revoking the contract with largest LPG producer company Jamshoro Joint Venture Limited (JJVL) in June 2020. The committee was informed that shunting down the local LPG production witnessed the loss of 9000 Metric Tonnes local gas production per month. While revoking of contract between SSGC and JJVL led to the monthly loss of Rs170 million to national kitty under head of Sales tax. The Committee asked Sui Southern Gas Company Limited (SSGC) to revisit its decision of revoking gas supply contract with largest LPG producer in larger national interest.

Article source: https://nation.com.pk/11-Aug-2020/centre-to-discuss-matter-pertaining-to-gas-distribution-among-provinces-in-cci

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