Provinces agree to carry forward Gas sector reforms process

September 28, 2017

Prime Minister Shahid Khaqan Abbasi chaired 5th meeting of the Gas Sector Leadership Committee today at P. M’s Office.

 

The meeting was attended by Chief Minister Sindh, Syed Murad Ali Shah, Chief Minister Balochistan Sanaullah Khan Zehri, Minister of State for  Energy  Jam  Kamal  Khan, Minister of Energy Khyber Pakhtunkhwa Mr. Atif Khan, Minister of Finance Punjab Dr. Aysha Ghaus Pasha, Chairman OGRA Ms. Uzma Adil Khan and other senior officials. World Bank Pakistan Mission Leader Ms. Defne Gencer along with senior officials of the World Bank were also present.

 

At the outset, the Prime Minister highlighted the energy needs of the country and the strategy being pursued to carry out reforms and meet consumer’s demands for energy. He stated that availability, affordability, efficiency and sustainability were the hallmark of gas sector reforms process.

 

The Prime Minister observed that around 100 gas discoveries made during this year were not enough to meet the existing demand and therefore necessitated the import of gas besides enhancement of local production. 

 

Discussing the reform process, the Prime Minister highlighted that the new policy, regulations and technical framework would be perfectly compliant with the constitutional provisions.

 

The Prime Minister assured the meeting that all constitutional issues pertaining to gas sector were being addressed at the level of CCI. He said that while the constitutional matters were being dealt at an appropriate level, the process of operational and tactical reforms should simultaneously be continued.

 

Mr. Khalid Rahman, Gas Sector Reform Team Leader / MD SSGC briefed the meeting on downstream and upstream gas sector reforms including Third Party Access (TPA), un-bundling of transmission and distribution business, licensing and tariff methodology. The meeting was apprised that draft TPA rules have been submitted to OGRA and public comments are being invited. Network codes are in the final stages and SNGPL Board has approved processing of the appointment of Transaction Advisor. It was further briefed that licensing proposals were being considered by OGRA. policy reforms regarding gas sector have already been referred by the CCI to IPCC for discussion and comments from Sindh and Khyber Pakhtunkhwa have been received.

 

World Bank Consultant briefed the meeting on recommendations regarding allocation of policy and regulatory rules, establishment of Directorate General of Exploration & Production in the Ministry of Energy and establishment of Pakistan Petroleum Exploration and Production Regulatory Authority. The meeting was also briefed on existing administrative capacity of the public gas sector organizations and proposals for enhancement of its efficiency.

 

The Prime Minister thanked provincial governments and the World Bank for active and productive engagement in the reforms process. The Prime Minister sated that these reforms are inevitable for a sustainable gas supply system. The Prime Minister emphasized that the main objective of the reform process is to facilitate the end consumer without compromising on rights and privileges of the provinces and other stakeholders.  

 

Chief Minister Balochistan appreciated the role of the Prime Minister in leading these reforms and stated that Balochistan has supported the proposed reforms. He stated that the proposed reforms must lead to affordable and easy access of gas to the people of Balochistan.

 

Chief Minister Sindh while supporting the reforms process and emphasized on equal representation of provinces in the proposed regulatory bodies. He also underscored the importance of fulfilling constitutional requirements for these reforms and proper sequencing of procedural and constitutional reforms. Minister of Energy, Khyber Pakhtunkhwa also seconded the view point of the Sindh Province.

 

Minister for Finance, Punjab informed that the government of Punjab has already constituted a committee to discuss the gas sector reforms and emphasized on financial sustainability.

 

The meeting supported, in principle, to carry forward the reforms process and pledged to contribute towards providing a sustainable and efficient gas exploration, production, transmission and distribution system.

 

The Prime Minister assured the provinces of his personal commitment to work with each Chief Minister to deliver the reform program