The incumbent government is all set to initiate new gas supply schemes in constituencies of its key politicians in an attempt to muster large-scale support ahead of the upcoming 2108 general elections.
“A plan is under study to seek fund allocation in the upcoming federal budget to finance new gas supply schemes. Approval will be sought from the cabinet to implement the programme,” said an official of the Ministry of Petroleum and Natural Resources.
The moratorium had been imposed in 2011 by the Economic Coordination Committee during the time of Pakistan Peoples Party (PPP)-led government to clear the backlog of pending gas connections before issuing new connections.
However, the restriction was relaxed by the then government which went ahead with provision of gas connections to new towns and villages in the constituencies of key PPP parliamentarians.
The Supreme Court taking notice of the political move ordered a complete halt on the issuance of new gas connections.
Apparently, the current government seems to be working on the same lines.
A summary has been prepared to issue fresh gas connections despite pending cases of over 1m gas connections in Punjab.
In around four years of the present government, 500 million cubic feet of gas per day (mmcfd) has been added to the system, but at the same time production from existing fields has dropped 600 mmcfd.
It is being feared that new gas supply schemes would not only lead to increased load-shedding for the existing consumers but will push gas prices upwards.
Under licensing conditions, the utilities need to prioritise the needs of existing consumers’ before extending the network. Official sources are reported to have revealed that the funds to finance the new gas schemes will be generated from the existing consumers which is likely to be in the form of an increase in gas tariffs.
