Realising potential of Thar Coal project
Islamabad—The Special Committee of the Public Accounts Committee (PAC) of the parliament was informed on Monday that the government needs a total $ 6 billion to convert Thar Coal project into a big energy source to cope with the persisting energy crisis, but due to financial constraints it was unable to start working on the project in time.
Only extraction of coal from the site require $ 2 billion, while present government recently has provided Rs 2.7 billion for the development of the project and Dr Samar Mubarak Mund along with his team is working on the project. The Thar Coal reservoirs are of the inferior quality, but are in a huge quantity, which make it feasible. These coal reservoirs would be utilised through gasification and first grassfire unit would start production in September.
The country at present is facing a gas shortfall of 40 percent as only 4 million cubic feet per day (MMCFD) gas is available against total demand of 6.2, Mohammed Ijaz Chaudhary, Secretary Ministry of Petroleum and Natural Resources informed the Committee which met here with Yasmeen Rehman Convener of the committee in chair.
The committee members took serious notice of the spreading corruption in the Ministry as well as its attached departments and directed the secretary to hold monthly meeting of the Departmental Account Committee (DAC) so that PAC could focus only on genuine issues.
Ijaz Chaudhary informed that committee under the prevailing circumstance not a single foreign investor is ready to bring investment in the oil and gas exploration sector of the country. He said that Pakistan has to increase the wellhead gas price, saying that present wellhead price is not rationale.
The committee was informed that since 2002 a total of 17 new gas reservoirs were traced across the country out of which some were with limited quantity hence Oil and gas Development Company (OGDCL) was unable to start work on three projects due to law and order situation in the country, while the work on remaining five could not be initiated due to lethargic attitude of the people that matter, but now work has been started and they will start giving production within two years.
The committee was informed that one of the influential politicians of Punjab owes Rs 300 million to Sui Northern Gas Pipeline Company (SNGPL) as he had not paid the outstanding dues; the SNGPL disconnected his gas supply, but he himself has reconnected the gas. On this PAC asked the department concerned to take stern action against such people and recover all the liable dues.
Azim Iqbal Siddiqui, Managing Director Sui Southern Gas Company (SSGC) briefed the committee about the developmental schemes and availability of gas in the Southern Region. He said that the company was providing its services to over 2.2 million consumers, out of which 2.2 million are domestic consumers, 40, 000 commercial and 4,000 industrial consumers. He added that at present over Rs 540 million were liable to different consumers, including Rs 90 millions commercial consumers, Rs 70 industrial consumers and remaining Rs 380 domestic consumers, adding that this is only 1.5 percent of the total sale volume of the company.
Iqbal Siddiqui added 100 percent recovery is not possible and company was seriously considering to wave off the longstanding dues.
The committee was informed that gas theft and other line losses 12 percent are highest in the systems of SNGPL and SSGC. The committee also directed the MD OGDCL to black list all such companies against which cases are registered.
Realising potential of Thar Coal project