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An annual gas theft of Rs 40 billion has been revealed across Pakistan.
During a meeting of the National Assembly’s Standing Committee on Petroleum, chaired by Syed Mustafa Mahmood, the Director General of Gas disclosed that Rs 40 billion worth of gas is stolen annually in the country, with more than Rs 25 billion worth of gas stolen from the systems of Sui Southern Gas Co (SSGC).
Petroleum Division officials further stated that the gas sector’s circular debt stands at Rs 2 trillion. The Petroleum Secretary mentioned that a subsidy of Rs 130 billion is provided to small domestic gas consumers, which is then transferred to other consumers.
The DG of Gas highlighted that selling LNG has become problematic for the government, with gas losses at 12% in Sui Southern and 6% in Sui Northern, exceeding the criterion set by OGRA.
During the meeting, Petroleum Secretary Momin Agha informed that the country supplies 4.2 billion cubic feet of gas daily, including LNG. He said that one billion cubic feet of LNG is part of the total gas supply. The DG of Gas added that the power sector must either utilize the entire LNG or find another solution.
DG Petroleum Concessions Kashif Ali Abbasi stated that after a gas well in Kekra in the sea turned out to be dry, no company is willing to explore the offshore sector of oil and gas.
Petroleum Secretary Momin Agha mentioned that after the government arranged a test cargo of crude oil from Russia, the private sector started importing it. He noted that a price cap of $60 per barrel is imposed on Russian crude oil, and purchasing above this price would trigger U.S. sanctions.
Earlier in the meeting, committee member Asad Alam Niazi asked the Petroleum Division to present a plan for the next five years. Committee member Mian Khan said that companies operating in gas-producing areas do not take the relevant Member of the National Assembly into confidence.
Committee Chairman Syed Mustafa Mahmood remarked that they would conduct a comprehensive briefing on every sector of petroleum. DG Petroleum Concessions Kashif Ali Abbasi informed the meeting that a total of 149 licenses have been issued for oil and gas exploration in the country so far, with 467 discoveries made, including 96 oil and 371 gas discoveries.
Later, Petroleum Minister Musadik Malik informed the meeting that the global LNG supply is increasing. Qatar is increasing its LNG supply by 33% next year, and Australia is also boosting its LNG supply. He emphasized the need to enhance local oil and gas exploration in Pakistan, as the country’s oil and gas reserves are depleting.
He stated that there are cash flow issues regarding fuel, and PSO is also facing difficulties.
Committee members questioned why large companies are leaving Pakistan. The minister responded that global companies go where it is easier to do business. In Pakistan, security costs are also an issue for oil and gas exploration, as companies have to spend money on security in the areas they explore.
He mentioned that discussions are ongoing with two Chinese companies for investment in onshore and offshore exploration in Pakistan. A new policy regarding oil and gas exploration is also being developed.
According to the federal minister, 27% of the population in the country receives gas, and 5% receive LPG.
