Gas theft reduced from Rs8.8bn to Rs3.17bn in KP

PESHAWAR: The gas theft and line losses in Khyber Pakhtunkhwa’s southern region have been significantly reduced from Rs8.8 billion to Rs3.17 billion in the fiscal year 2023-24.

But still, approximately Rs8.684 million worth of natural gas was stolen daily in three southern districts of KP, resulting in Rs264.66 million monthly losses. The national exchequer suffered a total loss of Rs3.17 billion in the previous fiscal year 2023-24.

Data shows that transmission and distribution losses have consistently decreased over the years due to rehabilitation projects initiated by federal and provincial governments.

In 2019-20, total losses were 16,164 MMCF, including 9,091 MMCF in transmission and 7,073 MMCF in distribution, causing a financial impact of Rs8.8 billion. Similarly, in 2020-21, total losses dropped to 10,079 MMCF, with 4,937 MMCF in transmission and 5,142 MMCF in distribution, causing a financial impact of Rs6 billion in losses.

By 2021-22, losses further decreased to 7,241 MMCF, with 2,800 MMCF in transmission and 4,441 MMCF in distribution, amounting to Rs4.2 billion in losses.

However, in 2022-23, the total losses were 5,577 MMCF, comprising 2,562 MMCF in transmission and 3,015 MMCF in distribution, causing losses to the national exchequer amounting to Rs4.5 billion.

The data for 2023-24 highlights even greater improvement, with total losses reduced to 2,826 MMCF, including 929 MMCF in transmission and 1,897 MMCF in distribution. The financial losses dropped to Rs3.17 billion in the last financial year 2023-24.

The data revealed that despite spending a huge amount of Rs7.5 billion, approximately Rs8.684 million worth of natural gas was stolen daily in the Karak, Hangu, and Shakardara (districts of Kohat) in Khyber Pakhtunkhwa, resulting in a total loss of Rs3.17 billion for the previous fiscal year. The monthly loss was approximately Rs264.66 million.

Regional Manager Kashif Naveed shared details of the rehabilitation efforts, revealing that a 1,500-km gas distribution system was installed in Karak, Hangu, and Shakardara as part of the project.

“The federal and provincial governments funded the project, with Rs1.9 billion spent in phase one and around Rs5.6 billion in phase two, which will be completed by June 2025,” he said.

He added that an additional Rs11 billion will be required to complete the third phase, which aims to finalise the distribution system and further reduce line losses and theft in the region.

He said the Sui Northern Gas Pipelines Limited (SNGPL) has also succeeded in increasing the number of legal gas connections in these law-and-order-affected areas. The connections have risen from 8,000 to 23,000 over the past few years, contributing to better management and reduced theft. The regional manager said that the lack of a proper transmission and distribution system in these areas had compelled locals to steal gas by creating their makeshift distribution lines, significantly increasing line losses.