Sui Northern Gas Pipe Lines Limited (SNGPL) is suffering loss of rupees 20 billion per year due to up-to 16 percent unaccounted-for gas (UFG) issue. The main problem faced by SNGPL is gas pilferage and there exists no proper law in the country, which deals with gas theft. Around four percent of the total losses are on account of gas theft.
This was revealed by SNGPL officials in a meeting of the Sub committee of Public Accounts Committee on Petroleum and Natural Resources, held here Thursday, to discuss the paras of audit reports from 2004 to 2008 here at SNGPL Headquarter. Convenor of the Committee Yasmeen Rehman MNA chaired the meeting. It was also told in the meeting that rupees seven billion are needed for completion of various ongoing schemes in the SNGPL.
While briefing the media after the meeting, Yasmeen Rehman said that people are facing gas shortage due to gas theft. She said they has given the SNGPL one-month time to take concrete actions to put things in order and the progress will be reviewed after this period. She said further said that action needs to be taken against all those involved in gas theft under the law. She said the committee has recommended strict action against the defaulters and gas thieves.
She announced said that list of the gas defaulters would also be highlighted in the media. She was of the view gas pilferage is not possible without the connivance of the staff of the SNGPL and directed the authorities to take strict action the delinquent officials.
Saeed Ahmed Zafar proposed in the meeting that there should be no more gas connections in the country unless the previous schemes are completed. He also said that use of CNG should be curtailed adding that all over the world, CNG is used only for public transport. He also said that there should be a clear-cut policy regarding the import and use of LPG and LNG so that it could be helpful in bridging the demand and supply gap of gas.
Arif Hameed informed the committee members that they are preparing a list of the gas defaulters and thieves and the same will be submitted to the committee very soon. Answering a question regarding the policy of giving connection to the new schemes, he said that they are short of gas and working on a plan that first preference should be given to the schemes, which are 90 percent completed. He added that in the same way preference should be given to the schemes according to their position on ground.
He informed the committee members about the progress of recovery from the defaulters. He said that company has recovered Rs 9.7 billion till June 30, 2011 out of the total recoverable amount, which was Rs 30 billion till April 2011. He said that there is low ratio of gas theft in big industries. Without naming the industry, he said that they have disconnected its connection, which was the defaulter of Rs 470 million.
In order to control gas theft in CNG stations, he said they have installed 600 electronic GPRS meters and 1,700 more meters will be installed till next month. He said that ministry of petroleum is working on the gas theft bill and very soon it will be presented before the parliament.
In the meeting, para 166 was presented in the meeting according to which the company has suffered a loss of Rs 12.2 million due to undocumented supply of gas to police line no. 1 colony, Rawalpindi. The committee was briefed that they are using the gas illegally for the last 15 years. The committee said that gas to the police line should be immediately disconnected and matter should be taken up with the chief minister and IG Punjab.
The committee directed the officials to contact secretary interior and ask him to arrange meeting of police officials with the petroleum ministry after contacting the officials of Punjab Police. While discussing para 165 regarding the loss of Rs 12.730 million due to purchase of defective material. The committee directed the SNGPL authorities to put the company on SNGPL web-site and recommended blacklisting it.
The trial purchase order against tender inquiry SNT -1181/04 for 20 of the total quantity required was placed on M/S BAPCO Lahore representing M/S Coaltar Refinery, Iran. M/s Inspectorate was appointed as Third Party Inspector to inspect the material on behalf of SNGPL. However, upon receipt of the material the, user's department reported that the material received was below specification. The meeting was also attended by Saeed Ahmad Zafar MNA, Hamid Yar Hiraj MNA, Managing Director SNGPL, Arif Hameed as well as officials of SNGPL and Auditor General Department.
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