Industrialists question chairman OGRA over gas shortages

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Nasser Hyatt Maggo termed gas supply shortages and disruptions a matter of survival for industry, with repercussions for the country’s foreign exchange reserves.

He made these observations while welcoming Oil and Gas Regulatory Authority (OGRA) Chairman Masroor Khan at the Federation House on Monday.

OGRA chairman held a consultative session on the burning issue of ever-increasing gas shortages for industry and end-users. Maggo in a statement pointed out that buying LNG at $30.6 per MMBTU would destroy the fuel supply safety and foreign exchange reserves of Pakistan.

“Gas supply shortages and disruptions have become an issue of survivability and sustainability for the industry of Pakistan – the backbone of precious foreign exchange earning sectors of the economy; as both export-oriented and the rest are interlinked and intertwined in a way that production cycles in either affects the other,” he said.

FPCCI President urged the government to devise a reliable and efficient mechanism to provide gas to export and non-export industries 24/7 to ensure continuation of production and employment opportunities. FPCCI chief also reiterated his proposal to issue private LNG import licenses to bridge the incrementally yawning demand-supply gap.

FPCCI VP Hanif Lakhany said he was concerned at the lower imports of LNG this year and that too at a very inflated rate, which in turn was bound to diminish whatever industrial sector growth was left.

He also wondered at the inaction and lack of planning of the government, coupled with no support, facilitative or compensatory package in sight.

OGRA Chairman Masroor Khan said the government machinery was fully aware of the issues being faced by the industrialists and domestic consumers, and, the issues would be addressed through setting up 2 new LNG terminals and increased number of LNG cargoes in the years to come.

He assured all the 15 to 20 LNG associations and alliances of the country that their voice was being heard.

OGRA Member Gas Muhammad Arif discussed the grave issues of safety and irregularities at the end of smaller retailers in the LNG and LPG distribution and sales network across the length and breadth of Pakistan. He admitted that it would take some time to implement the standards at the small shops selling gas for the domestic and small-scale commercial consumption.

“OGRA is working towards a system where every gas cylinder in the country will have a National Serial Number for safety, standardisation, certification, recertification and tracking,” he added.

Muhammad Ali Haider, Convener of FPCCI’s Central Standing Committee on LNG, said that domestic consumers; who buy 1-2kgs of LPG at a time, could not afford that too at a rate of Rs202.57/kg. Additionally, only 28 percent households in Pakistan get piped natural gas and that was also not available during the testing winters.

Notably, the high-profile meeting was attended by the senior representatives of Parco Refinery, Byco Refinery, PSO, Brushane Gas, Hascol, Sui Southern Gas Company, Plant Operators of Port Qasim and several other private-sector industry players.