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Revolving Loans In Gas Sector Reach Rs 250 Billion: Omar Ayub


Aizbah KhanWeb Editor

24th Sep, 2020. 09:31 pm
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Revolving Loans In Gas Sector Reach Rs 250 Billion: Omar Ayub

Federal Minister for Energy Omar Ayub said that the Sindh government was not giving permission for laying of 17 km gas line.

Addressing a press conference in Islamabad along with Special Assistant to the Prime Minister Nadeem Babar, Omar Ayub said that gas shortage in Sindh is currently 250 MMCFD.

Omar Ayub said that this thing has gone beyond Article 158 and that is why the Prime Minister had called a conference in which the Chief Ministers of the four provinces and their representatives were also present.

He said that at the suggestion of the Council of Common Interests, the purpose of the conference was to go ahead and reach a consensus on how to fix the price of gas in Pakistan.

“We have been talking to the Sindh government for almost a year and a half about laying a 17-km stretch of the gas pipeline, but the Sindh government has unfortunately not allowed it yet,” he said.

The Federal Minister said that if the Sindh government gives permission to lay the line in this 17 km then we will be able to complete it as soon as possible and put 150 MMC gas in the system.

He said that Pakistan has a shortage of its own gas so it will have to import it and at present, the revolving credit of the gas sector is Rs. 250 billion due to wrong policies of previous governments.

On this occasion, Nadeem Babar said that gas pressure is low in Sindh especially in Karachi and complaints are being received.

He said that last year about 1120 to 1150 million cubic feet of gas was being added to the Sui Southern gas pipeline system but today this number has come down to 960 to 970.

He said that if we calculate the annual rate, the production is reduced from 140 to 150 million cubic feet, while the demand for Sui Southern has increased by 100 and decreased by 250.

Nadeem Babar said that Sui Northern is not declining while the difference between the two companies is that the position in Sui Southern or Sindh has been that we will use local gas and not LNG.

“Since last June, we have started supplying an average of 100 billion cubic feet of LNG to K-Electric and now there are 110 but an average of 100 billion cubic feet,” he said.

The Special Assistant said that in order to meet the shortfall of Rs 250 crore, we are trying to alleviate the problems by giving Rs 100 billion to Karachi Electric, otherwise, the situation would have been worse.