ISLAMABAD: The Senate Standing Committee on Petroleum expressed the resolve to call representatives of the gas-consuming industries and fertilizer companies in its next meeting, to devise collaborative solutions that address the evolving energy landscape.
The meeting of the committee was held under the chairmanship of Senator Abdul Qadir to discuss a range of pressing energy matters.
On the occasion, Sui Southern Gas Company (SSGC) provided insights into the ongoing supply of natural gas to Fauji Fertilizer Bin Qasim Limited (FFBL). SSGC MD informed the committee about the allocated 45MMCFD natural gas and 10MMCFD RLNG provided to FFBL against the demand of 68 MMCFD, stressing that these allocations are the maximum feasible.
The SSGC MD said their resources are quickly depleted owing to the downward trajectory of gas production reduced from 1100 MMCFD to 750 MMCFD at present. FFBL representatives shared their operational struggles due to these limitations, citing substantial financial losses amounting to Rs. 5 billion in the first two quarters being the sole manufacturer of DAP in Pakistan. If Pakistan imports urea/DAP then the national exchequer will suffer an accumulative loss of $1-1.5 billion a year.
The issue of gas supply irregularities in various areas of Karachi also came under the committee’s scrutiny. SSGC revealed that substantial progress has been made, with 0.1 million meters already installed and plans to bring 0.4 million more houses under the metering system by June 2024. The committee directed the immediate installation of meters for households utilizing gas without meters, or else discontinuing their gas connection.
The committee also received a comprehensive briefing on Corporate Social Responsibility (CSR) initiatives undertaken by OGDCL/PPL in Balochistan. The committee emphasized the prioritization of education/health in Balochistan under CSR. After a brief discussion, the committee decided to form a sub-committee to oversee the CSR initiatives undertaken in Balochistan by OGDCL/PPL.
The committee also delved into concerns related to the issue of non-provision of gas supply to the residents within a 5km radius of the Jhal Magsi Oil & Gas field. The chairman committee recommended a joint visit by SSGC and MNA Magsi to assess the area and conduct a re-evaluation as the houses in the area are being increased many times with the passage of time from the earlier 600 houses.
If the government could not release the project amount in time then OGDCL which is casting Rs. 1800 /MMCFT needs to be adjusted in the project completion. SSGC outlined the project’s scope, costs, and timeline, with completion targeted for March 2024, contingent on the timely release of funds.
