Sindh Government on Thursday rejected any attempt of Federal Government to work out natural gas tariff by including RLNG into existing Weighted Average Cost of Gas (WACoG).
This clear message has been sent by Chief Minister, Sindh, in a letter to Prime Minister Imran Khan in reaction to a recent media briefing by the Prime Minister’s special Assistant on Petroleum, Nadeem Babar.
While citing Prime Minister’s Advisor on Petroleum Nadeem Babar, in a press briefing, in which he claimed that in the last CCI meeting Chief Minister Sindh had agreed on inclusion of RLNG in the Weighted Average Cost of Gas (WACoG) formula of local gas, he said that the news is very disturbing and has created unrest amongst the people of Sindh.
According to the Chief Minister, Federal Government has time and again assured Government of Sindh that import of RLNG would solely be for tier-II category of natural gas consumers under ring fenced tariff arrangements and existing tier -I consumer of natural gas, under WACoG based tariff, shall not bear the burden of high cost of imported RLNG.
“Any Federal Government attempt to work out natural gas tariff by including RLNG into existing WACoG of indigenously produced natural gas is gravely disturbing, upsetting and illegal. Government of Sindh categorically rejects any such unconstitutional and illegal proposal. Sindh is the largest producer of natural gas in the country and its consumers shall not be burdened with the high cost of RLNG,” he added.
Murad Ali Shah further apprised the Prime Minister that the notified price of RLNG for December 2019 is $ 10.8349 per MMBTU i.e. Rs 1690 per MMBTU against the WACoG of Rs 520.54 MMBTU for indigenous gas, adding that Sindh produces between 2500-2600 MMCFD natural gas and the quota of SSGCL for its two franchised provinces i.e. Sindh and Balochistan varies between 1200-1300 MMCFD. Sindh currently receives on an average 900-1000 MMCFD natural gas against its “constitutional right” of 2500-2600 MMCFD.
Chief Minister further argued that the current supply of gas to Sindh, defies even common sense given that the people of Sindh on the one hand are deprived of their “constitutional share” of 2600 MMCFD at Rs 520.54 per MMBTU while on the other hand, they are also being asked to buy it at Rs 1690 per MMBTU.
The letter says that the reported news item also carries some “ridiculous” comments by the Special Assistant to the Prime Minister with respect to linking wheat production of Punjab with oil and gas production.
“This is highly incorrect, misleading and irresponsible claim by the Special Assistant to the Prime Minister which is contrary to the facts and misinforms the citizens of Pakistan, “he said.
“The distribution of natural gas is governed by article 158 of the Constitution of Pakistan. This is analogous to grant of hydel profits to the provinces of Khyber Pakhtunkhwa and Punjab based on article 161(2) of the Constitution,” he maintained.
Chief Minister Sindh has requested Prime Minister to direct Petroleum Division to desist from any attempt to include RLNG into existing WACoG formula for indigenous natural gas for tariff determination and ensure supply of locally produced natural gas to consumers in Sindh as per demand and as per their constitutional right.
Prime Minister has also been requested to direct Ministry of Energy to immediately issue a clarification in the press accordingly.
