ISLAMABAD: The federal government will reassess its gas distribution strategy, particularly the policy of prioritising Balochistan’s gas supply to domestic consumers during winter months at the expense of Sindh province, a parliamentary panel was apprised on Thursday.
Mustafa Mehmood chaired the National Assembly’s Standing Committee on Petroleum’s meeting on Thursday.
The parliamentarians from Sindh also expressed concerns regarding diversion of gas from industry in Sindh to domestic sector in Balochistan, curtailments to Captive Power Plants (CPPs) and the allocation of 35 percent of gas to the private sector in the province.
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The committee has further learned that the government plans to continue deferring the import of liquefied natural gas (LNG) cargos under long term agreements with Qatar through negotiations.
During the winter, Sui Southern Gas Company (SSGC) Deputy Managing Director Operations Syed Muhammad Saeed Rizvi informed the committee members that approximately 70 million cubic feet per day (mmcfd) of gas produced in Sindh province was redirected to Balochistan.
Conversely, during the summer months, excess gas from Balochistan was supplied to Sindh.
The official said that the Balochistan High Court directed the SSGC to increase the protected consumer limit for Balochistan from 90 cm to 360 cm which significantly affect monthly bills, especially during winter.
The court had fixed rates at Rs2,551 per month for summer (April to October) and Rs8,848 per month for winter (November to March).
Minister for Petroleum Dr Musaddiq Malik said that the company had already appealed before the court and government would look into this issue in the light of recommendations of the committee.
Earlier, Naveed Qamar argued that the Article 158 of the Constitution gave first right of gas use to producing province and can divert in case of surplus. He said the constitution was more important than government’s priority policy on gas.
The company official said that the company has been facing Rs25 billion financial losses as a result of the court’s verdict to supply ingenious gas to domestic sector on a fix rate.
The secretary Ministry of Energy provided a detailed briefing on gas procurement agreements with Qatar and Azerbaijan, challenges faced by local gas distribution companies, and the government’s new policy framework for private companies’ involvement in natural gas exploration engaging stakeholders for new discoveries and prudent network operations, which will help optimise reserves, promote competition, and reduce circular debt.
Minister for Petroleum Dr Musaddiq Malik said that the government succeeded in deferring five cargos for current years already. In 2026, the government would be able to renegotiate the prices which is 13.37 to Brent with Qatar, he added.
This is because the country currently has a surplus of imported gas, he said largely due to power plants declining to use 600 million cubic feet per day of LNG as it does not align with the economic merit order.
In case a uniform gas price (blending of natural and RLNG) which was around Rs2,400 per mmbtu would come on merit list of power sector and gas pipeline would be saved from higher pressure.
Copyright Business Recorder, 2025
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