ISLAMABAD: Oil and Gas Regulatory Authority in partnership with World Bank (WB) has launched a series of consultative sessions across Pakistan to review the existing tariff regime for the natural gas sector.
The first session was held in Peshawar on Thursday and was presided by OGRA Chairperson Uzma Adil Khan, reported a leading English daily.
Presentation on the tariff regime was given by OGRA Executive Director Misbah Yaqub and WB consultant gave one on third-party access rules and network code respectively.
Government has directed OGRA to complete tariff methodology and conclude third-party access rules by end of December this year, which is a critical component of breaking up large state-owned public gas entities as part of sweeping sector reforms.
Khan said, “We have initiated these consultative sessions for the input of all stakeholders which include provinces, Sui gas companies, lawmakers and consumers. The authority will consider the valid arguments and address the concerns, if any.”
Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) owned by the government will be broken apart to get funds from WB and Asian Development Bank (ADB).
Both companies have been directed by the government to hire an advisor to conduct due diligence for this splitting up.
This plan envisages sees separation of transmission and distribution segments of these gas utilities and establishing an independent transmission company and four distribution companies. It is expected this would help to rein in losses and improve efficiency in service delivery.
Originally, the plan to split SNGPL and SSGC was supposed to be concluded by June 2017, but the process has been marred by delays and expected for completion in 2018.
Now consultative sessions in this regard will be held in Lahore, Karachi, Quetta and Islamabad.
