Islamabad:
Managers of SUTHERNN GAS COMPANY (SSGC) admitted Thursday during a meeting of a parliamentary panel that its agreement with a private company to convert natural gas into LPG could have an impact on gas supply to its consumers.
At a meeting of the Standing Committee of the National Oil Assembly – chaired by Mustafa Mahmood – the committee member, Shahid Ahmed, noted that gas shortages already exist in the country and yet the SSGC plans to sign a contract with Jamshoro Joint Venture Limited (JJVL).
SSGC officials have confirmed that the contract would have an impact on local gas supply. They informed the committee that the JJVL would convert gas into LPG and sell it on the private market.
The Committee wondered if this agreement would reduce the gas supply of Suit Southern and asked for all the details of the JJVL agreement at the next meeting.
The parliamentary panel has also raised questions concerning the deregulation of the oil sector.
The committee member, Shahid Khan, noted that Khyber Pakhtunkhwa (KP) had abundant natural resources. He wondered if an investigation had been carried out concerning these natural reserves. The Committee has requested details on surveys for the next meeting.
During information on gas storage projects, officials said there was a need for gas storage facilities in the country. They said there was a plan to build a new gas storage project in the country.
However, the committee recommended that the gas storage project arrest, arguing that the need should be assessed first.
MNA Sardar Ghulam Abbas noted that earlier, it was said that there were large gold reserves in Balutchistan. “Where are these reservations? We must first check what exists and what is not done,” he added,
The Committee also expressed concerns about the absence of the Minister of State for oil at the meeting. The president noted that secretary Petroleum was abroad but that the Minister of Petroleum should have attended the meeting.
The officials said that a formula had been proposed by the Common Interest Council (CCI) for the deregulation of the oil sector and 35% of the newly discovered gas can be sold to the private sector. They said efforts were underway to deregulate the oil sector.
Mna Asad Niazi questioned what will happen to the provinces in the event of deregulation. Oil officials replied that Sindh had again raised this issue in the ICC.
