The federal government is currently reviewing a proposal aimed at minimizing transmission system losses within Sui Southern Gas Company. This step is crucial, especially in Balochistan where gas transmission poses significant financial challenges. The estimated loss stands at around 40%.
Discussions on this matter took place during a recent Economic Coordination Committee (ECC) meeting, stressing the need for a coordinated action plan to address gas transmission losses in Balochistan. Non-payment of gas bills from Balochistan was highlighted as a concern, prompting suggestions to redefine criteria for transmission losses and address the lower gas yield from the region. These proposals are slated to be presented to the Oil and Gas Regulatory Authority (OGRA).
The Petroleum Division has been tasked with engaging in consultations with all provinces regarding potential gas price increases, managing public perception through media channels, and raising awareness among the population.
The committee recognized the financial challenges faced by gas consumers in Balochistan, proposing mechanisms to ensure payment of higher bills without adversely impacting Sui Southern Gas Company.
During discussions, reservations were voiced regarding the proposal for a uniform tariff for all gas consumers, urging a reconsideration of this approach.
Additionally, concerns were raised over the delay in OGRA fulfilling its legal obligation to review gas prices within the stipulated 40-day period. This delay necessitates federal government intervention.
There were suggestions to grant OGRA the authority to independently set gas prices in Pakistan, similar to regulatory bodies in other countries. This would relieve the federal government of this responsibility and streamline the price determination process, reducing delays and potential losses.
Furthermore, the issue of providing low-cost gas to private power generation plants, especially inefficient ones, was addressed. It was proposed that instead of subsidized rates, these plants should be offered LNG rates for gas supply.