Senate Panel Holds Government Responsible for Ongoing Gas Crisis

Senate Panel

ISLAMABAD: During a meeting of the Senate Standing Committee on Petroleum held on Thursday, the government faced strong criticism over the ongoing gas crisis, with senators pointing to poor coordination and mismanagement as key factors behind the supply issues.

While some regions faced a shortage of gas supplies, others experienced oversupply within the network, leading to gas pressure problems.

The committee expressed concerns about the inefficiency of the system and the failure to adequately manage the country’s gas resources.

The session, chaired by Senator Umar Farooq, saw a detailed discussion on the gas shortfall and the exploration activities necessary to meet the growing demand for gas in Pakistan.

One of the major points of contention was the delay in appointing a director general for the Petroleum Concession Directorate (DGPC), a critical position overseeing oil and gas exploration and development in the country.

The senators expressed dissatisfaction with the government’s inability to fill the DGPC position, which had been vacant for over four months.

The committee strongly emphasized the importance of filling the vacancy promptly, arguing that the delay was detrimental to the country’s energy sector, especially given the critical nature of the role in managing oil and gas resources.

The Petroleum Division, represented by Additional Secretary Momin Agha, provided an update on recent exploration activities, reporting that drilling had taken place at 56 sites over the past three years, with an investment of $1.23 billion. These efforts had yielded an average of 7,696 barrels of oil per day and 260 million cubic feet of gas daily.

Despite these efforts, the committee remained concerned about the continued gas shortfalls, particularly in Punjab and Khyber Pakhtunkhwa, both served by Sui Northern Gas Pipelines Limited.

Senator Quratul Ain Marri raised concerns about the curtailment of gas in these regions, pointing out that while some areas experienced shortages, the system also faced issues related to excess gas in the network, which was causing gas pressure challenges.

The Director General of Gas acknowledged that while supply was being curtailed in the northern region, the depletion of gas fields in the southern region had contributed to the shortfall there.

Additionally, the curtailment of imported gas was attributed to low demand from the power sector, as it was deemed economically unviable to sell gas to domestic consumers at Rs1,200 per unit, when its actual cost was Rs3,600 per unit.

Furthermore, the lack of sufficient storage capacity and limitations on pipeline capacity to hold gas beyond a certain point added to the challenges facing the country’s gas supply chain.

In response, the committee directed the Petroleum Division to take immediate action to resolve the issues, emphasizing the urgency of addressing both the leadership vacuum and the broader supply challenges impacting the gas sector.