RECORDER REPORT

ISLAMABAD: Petroleum Division has stated that Sindh will face gas load shedding for two years even if the province’s interpretation of Article 158 of the Constitution is applied.

The interpretation of Article 158, as viewed by the Petroleum Division, was presented before the Council of Common Interests (CCI) and according to it, citizens of Pakistan (not of any particular province) have the first right of use on resource given that citizens are ultimate owners of this resource. Any use beyond domestic usage needs to be decided amicably between the federation and provinces under the Article 158.

The media reports about wheat as an analogy are also incorrect as Special Assistant to Prime Minister (SAPM) Nadeem Babar had stated that the government also maintains uniform procurement and release policies on all items like petrol, electricity, water and wheat.

Sindh produces approximately 2,243 mmcfd gas, out of this 1200-1300 mmcfd gas is put in SSGC system while approximately 700 mmcfd is provided directly to power and fertilizer sectors in the province. After netting out the gas supplied by SSGC in Balochistan, there remains 400-500 mmcfd of gas that goes out of Sindh. It must yet again be reiterated that even if Sindh’s interpretation of Article 158 is applied, Sindh will be short of gas for two years.

The Division refuted the allegations leveled in a letter of Chief Minister Sindh Murad Ali Shah to Prime Minister Imran Khan responding to a press briefing by Special Assistant to Prime Minister (SAPM) Nadeem Babar on gas crisis in Sindh. Petroleum Division states that it has neither rejected the Sindh government’s demand that gas needs of the province should be fulfilled first, nor any such recommendations is under consideration.

During CCI meeting held on December 23, 2019, both the SAPM and Chief Minister Sindh had agreed to categorize LNG as gas and the subsequent jurisdiction of Oil and Gas Regulatory Authority (OGRA) to determine its price. They had also agreed to the SAPM’s visit to Karachi, subject to the CM Sindh’s availability, to discuss the subject of weighted average cost of gas (WACOG) and gas distribution and pricing through constructive discussions.

The Division stated that any gas discovered in Sindh has been allocated to Sui Southern Gas Company Limited (SSGCL) during the present government’s tenure. The reporting of SAPM’s interpretation of Article-158 has also been misconstrued.

On the contrary, the federal government would wish to uphold the positive spirit of CCI meeting wherein it was mutually agreed to reach decisions on distribution of gas to Sindh in a collaborative manner. It is, therefore, in the interest of Sindh and not just the federation, to arrive at a mutually agreed structure for supplies, distribution and pricing of natural gas in any form to ensure uninterrupted supplies to the country.