Senate Body On Petroleum Recommends Formalization Of Policy For LNG Import

The Senate Standing Committee on Petroleum on Wednesday recommended the government to formalize a policy for LNG import and permit private entities to import LNG to meet local demands

ISLAMABAD, (UrduPoint / Pakistan Point News - 13th Dec, 2023) The Senate Standing Committee on Petroleum on Wednesday recommended the government to formalize a policy for LNG import and permit private entities to import LNG to meet local demands.

Chaired by Senator Mohammad Abdul Qadir, the meeting addressed the country's energy crisis, emphasizing the need for the ministry to work on newly discovered sites to alleviate the gas shortage and reduce the $32 billion import bill.

The committee discussed the imposition of flat rates for gas consumers in Balochistan. Additionally, it deliberated on the Urea shortfall in the country.

Director General Gas Abdul Rasheed Jokhi informed the committee that the country's daily consumption is 4000 mm cfd against the production of 3000 mm cfd.

Local consumers used 950 mm cfd, with fertilizer companies, including FFC and Engro, utilizing almost 750 mm cfd. Marri Petroleum supplied approximately 85% of gas to fertilizer companies, with the remaining 15% provided by other companies.

Senator Mohammad Abdul Qadir expressed concern that fertilizer companies, despite receiving subsidized gas rates, have not addressed the Urea and DAP shortfall.

He directed the ministry to provide details of fertilizer production against the gas supplied.

The committee also discussed levying flat rates for gas consumers in Balochistan. DG Gas clarified that similar tariff rates are applied to all consumers nationwide.

However, he acknowledged that consumers in colder regions experience increased gas charges during winter due to higher gas usage.

Senator Qadir recommended relaxing gas rates for consumers in cold areas during winter to meet their basic needs.

The committee addressed the recent increase in gas tariffs for local consumers. The DG Gas clarified that gas tariffs have not been increased for consumers falling in the protected category, constituting almost 57% of total consumers in this category.

Regarding the settlement of circular debt for PSO, SSGC, SNGPL, and OGDCL, DG Gas informed the committee that the circular debt in the oil and gas sector is currently at Rs. 2800 billion, with Rs. 2080 billion as the principal amount.

He said that the recent gas tariff increase would maintain the circular debt at its current level but would not result in a reduction.