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.
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