Pakistan’s gas sector suffers Rs 30 billion annual losses due to theft, inefficiencies

Islamabad, Feb 21 (SocialNews.XYZ) Pakistan's gas sector incurs losses of up to 30 billion Pakistani rupees annually due to theft and system inefficiencies, with lawmakers warning that the financial burden ultimately falls on consumers, local media reported on Saturday.

A Pakistani parliamentary panel was informed of the losses during a meeting of the National Assembly Standing Committee on Energy, chaired by Syed Mustafa Mahmood. The gas officials briefed the committee that Sui Northern Gas Pipelines Limited was suffering losses of nearly Rs30 billion as a result of theft and operational inefficiencies.

Member of the National Assembly Gul Asghar Khan alleged that although the industrial units were involved in gas theft, the resulting losses and financial burden were being passed on to domestic consumers.

Officials added that losses within the limit determined by Pakistan’s Oil and Gas Regulatory Authority (OGRA) were also transferred to consumers, noting that even in advanced systems, Unaccounted for Gas (UFG) losses can reach as high as six per cent, Pakistani daily 'The Express Tribune' reported.

They informed the committee that gas theft in Sui Southern Gas Company stood at over 10 per cent, equivalent to nearly 30 Billion Cubic Feet (BCF) annually, with combined yearly losses from theft and inefficiencies reaching Rs30 billion.

In a separate meeting, the National Assembly's Subcommittee on Energy, led by Babar Nawaz Khan, was informed that the Hyderabad Electric Supply Company (HESCO) would submit its business plan to Pakistan's National Electric Power Regulatory Authority (NEPRA) before April.

The committee convener noted that the Pakistani Prime Minister had written to Peshawar Electric Supply Company (PESCO) about setting up a 132kV grid station at a site that earlier operated as a central node connecting 14 feeders.

The officials told the newspaper that the transmission line had been extended without affecting any residential population, and the grid station was later relocated to another site.

The convener alleged that the vested interests of certain individuals drove the relocation

During the meeting, the committee also deliberated on energy training funds collected by petroleum companies, 'The Express Tribune' reported. Committee member Syed Naveed Qamar noted that the funds were not utilised for their intended purposes, citing the absence of effective policymaking.

Source: IANS