New gas connection applications stand at 2.5 million: government urged to provide RLNG to domestic consumers

A parliamentary panel has recommended the government to provide expensive re-gasified liquefied natural gas (RLNG) to domestic consumers as number of pending applications for new gas connections in Punjab and Khyber Pakhtunkhwa has reached 2.5 million. The National Assembly Standing Committee on Energy met under its Chairman Imran Khattak here on Thursday.
A member committee recommended the committee to invite minister for petroleum in the next meeting for formulation the new gas connections policy. Under the policy, everyone should be provided gas connection as the government has not set any limits for yearly new gas connections.
Earlier, Managing Director Sui Northern Gas Pipelines Limited (SNGPL), Mahmood Zia Ahmad informed the committee that the Oil and Gas Regulatory Authority (Ogra) allows the company a certain number of new gas connection annually. "Last year, the gas company installed 400,000 new gas connections and again same number of new gas connections is allowed by the Ogra," he added.
The managing director further said that indigenous gas is not enough to be provided to everyone while receivable from RLNG consumers reached Rs 30 billion. He said the expensive RLNG to domestic consumers would further increase the receivables of the company.
Responding to a question, he said that the government would install indigenous gas connections in only government housing schemes while private housing schemes would be provided the RLNG due to gas deficit in the country.
Under Ogra Ordinance 2002, the Chairperson Ogra Uzma Adil argued that the government set a guideline for allocation of new gas schemes and the Authority allowed a certain number of new gas companies after looking into financial health of the Sui companies. "We have to safeguard the interests of all the stakeholders as the gas companies generate their own revenue and do not receive grants or subsidy from the government," she added.
The SNGPL managing director further said that the company has completed gas pipeline schemes for erstwhile Federally Administered Tribal Areas (FATA), adding that the gas would be provided first to Darra Adam Khel.
The committee also constituted a four-member committee headed by Pervaiz Khatak while the secretaries Cabinet Division, Planning & Development Division and Petroleum will be the members of the committee.
The committee will identify and remove the bottlenecks in execution of gas schemes, and other schemes of members of legislative assemblies will be covered under Corporate Social Responsibility (CSR).
The committee observed that Articles 158 and 172 (3) of the Constitution of Pakistan should be implemented in letter and spirit.
Member Committee Shahid Ahmed asked the secretary Petroleum Division for fast track execution of development schemes in Karak (KP) where MOL, Mari Petroleum and Oil and Gas Development Company (OGDC) are busy in exploration activities.
The committee was informed that the KP government released Rs 636 million funds for development for Karak out of total pledged Rs 4.3 billion. He said remaining amount of total Rs 9 billion would be allocated after seeking approval from Economic Coordination Committee (ECC).