Pak-Iran project's gas not meant for domestic consumers

AP -- Secretary Ministry of Petroleum and Natural Resources Muhammad Ejaz Chaudhry said on Thursday domestic consumers would not be able to afford Pak-Iran project's gas. Briefing National Assembly Standing Committee on Petroleum and Natural Resources that met here with Talib Hassan Nakai in the chair, the secretary said the gas from Pakistan-Iran gas pipelines cost around Rs 8.50 per unit which could be used for power generations, Industries and fertilizers.

He said that government had two option to meet the country's growing energy needs- either to import or explore new hydrocarbon resources to ensure availability of electricity and gas in the country. He said that Pak-Iran project would start supply from 2014 and adding if it got late then gas crisis would multiply.

About the LNG project the secretary said progress was being made and 17 international bidders had shown Expression of Interest in supply of energy and gas to Pakistan.
The committee was informed that presently the country was facing gas shortfall of 2.5 billion cubic feet against demand of 6 billion cubic feet.

He said if the situation continues to persist the gas loadshedding could be extended from two days. The secretary said the SSGC and SNGPL had recovered Rs 4 billion during the last 48 days and disconnected around 370 illegal connections in two months, mainly in Punjab.

The secretary informed that 90 percent of gas development programmes were being completed under the PM schemes while 10 percent belonged to the SSGC and SNGPL.
The committee took serious view about the mal-practices of provision of 500 CNG connections despite ban imposed in 2007.

The MD OGDCL Asif Sindhu said Rs 600 million budget had been allocated for the development schemes in next financial year and Rs 310 million was spent on development schemes in Balochistan last year.

The committee also showed concern over constant increase in prices of petroleum products. The committee recommended that report should be presented about illegal grant of CNG connections. The body also recommended that ban on MNA's gas development schemes should be lifted in order to provide the basic facility to their respective areas.

The committee was attended by Nawab Ali Wassan, Mian Abdul Haq Alias Mian Mitha, Khurram Jehangir Wattoo, Mir Ahmadan Khan Bugti, Syed Anayat Ali Shah, Ch Muhammad Barjees Tahir, Mir Muhammad Hanif Abbasi, Begum Shahnaz Sheikh, Abdul Waseem, Syed Haider Ali Shah, Muhammad Usman Advocate, Sh Aftab Ahmad, Nazar Muhammad Gondal and Rana Afzaal Hussain.