Pakistan’s gas sector suffers significant losses amounting to 30 billion Pakistani rupees each year due to theft and operational inefficiencies, as revealed in a meeting of the National Assembly Standing Committee on Energy. The Sui Northern Gas Pipelines Limited alone incurs nearly Rs30 billion in losses attributed to theft and inefficiencies, with concerns raised that these costs are ultimately borne by consumers.
Lawmakers highlighted that despite industrial units being involved in gas theft, the resulting financial burdens are shifted onto domestic consumers. Officials further disclosed that losses within the regulated limit set by Pakistan’s Oil and Gas Regulatory Authority (OGRA) are also passed on to consumers, emphasizing that even in advanced systems, Unaccounted for Gas (UFG) losses can escalate up to six percent.
Additionally, it was reported that gas theft at Sui Southern Gas Company amounts to over 10 percent, equivalent to nearly 30 Billion Cubic Feet (BCF) annually, contributing to the combined yearly losses of Rs30 billion from theft and inefficiencies. In a separate development, the Hyderabad Electric Supply Company (HESCO) is set to submit its business plan to Pakistan’s National Electric Power Regulatory Authority (NEPRA) by April, as informed during a meeting of the National Assembly’s Subcommittee on Energy.
During the discussions, it was noted that the Pakistani Prime Minister had initiated plans for a 132kV grid station at a former central node connecting 14 feeders, with concerns raised over the relocation of the grid station due to alleged vested interests. Moreover, the committee addressed the issue of energy training funds collected by petroleum companies, with concerns raised over the lack of effective policy implementation in utilizing these funds.
