Revenue requirements for gas companies; PM directs third-party forensic analysis

ISLAMABAD: Prime Minister Shehbaz Sharif has ordered a third-party forensic analysis of revenue requirements for Sui gas companies as determined by Oil and Gas Regulatory Authority (Ogra) well informed sources in Petroleum Division told Business Recorder.

The prime minister gave these directions on March 11, 2024 to the Petroleum Division during a presentation on petroleum sector.

The meeting decided that following presentations shall be made to the Prime Minister in onemonth’s time: (i) Weightage Average Cost of Gas (WACOG); (ii) mineral sector;(iii) offshore gas; (iv) Tight Gas;(v) unbundling of Sui gas Companies; and (vi) standards for energy efficiency for home appliances.

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Prime Minister Shehbaz directed that building upon the offshore basin and benchmarking study undertaken, an in-depth study be carried out and proposal for exploration (including G2G) be worked out on top priority within three months.

Petroleum Division has been directed to hire quality consultants for assisting in off-shore gas exploration deals, the sources added.

Prime Minister Shehbaz Sharif will be the chief guest in the Tight Gas Exploration plan roll out ceremony. The Petroleum Division has started work on organizing the ceremony within the next few days.

A committee shall be constituted by the Finance Division, comprising Petroleum Division and Power Division which will propose appropriate amendments in State Owned Entities Act, 2023 to enable review of Boards of SOEs to bring in competent professionals.

An Inter-Ministerial Committee will be constituted by Petroleum Division for implementation/ oversight of Iran-Pakistan Gas Pipeline. Petroleum Division is already in contact the US Embassy in Pakistan to seek waiver on restrictions imposed on Iran to start work on IP Gas Pipeline. This will issue will also be discussed with the Iranian President during his expected visit next month. The caretaker government had approved laying of 80 kilometers gas pipeline.

The Petroleum Division and the Power Division shall jointly prepare a plan for addressing the issue of circular debt flow and establish a Performance Monitoring unit (PMU) for effective monitoring. In consultation with provinces, plan for promotion of biomass fuel pellets will be explored.

The Power Division in consultation with Ministry of Industries and Production (MoI&P)/ Board of Investment is tasked to firm up and present a proposal to address issue of surplus power capacity by developing industrial zones within one-month. The Power Division has also been directed to resolve net metering issues in one month.

The Petroleum Division has been given three months’ deadline to hire consultant to assess the magnitude of losses due to infrastructure degradation/ gas theft/ inefficiency and help find remedies.

Copyright Business Recorder, 2024