MD SNGPL Reiterates Commitments to Gas Sector Reforms
MD SNGPL has reiterated its commitments to broad-based gas sector reforms while opening the gas sector to the competitive private sector.
He said while addressing Pakistan Energy Reform Summit 2022.
Former Prime Minister of Pakistan / Former Federal Minister for Petroleum Mr. Shahid Khaqan Abbasi, Minister for Power Mr. Khurram Dastagir and Minister of State for Petroleum Dr. Musadik Malik, DG HDIP Saeed Khan Jadoon, and MD SNGPL, and other eminent speakers addressed the summit.
SNGPL’s Managing Director in his address to the audience of the Pakistan Energy Reform Summit discussed various strategies to implement the GOP reform agenda in respect of Competition and Regulation; Market Liberalization Challenges and Mitigation (focus on the Gas Market).
The managing Director highlighted the roles of the Federal Government in the formation of policies, oversight of regulator (OGRA), and SNGPL obligations under the framework.
He elaborated on the overall transaction structure of SNGPL, indigenous / RLNG gas supplies, consumer pricing, and cross-subsidies structure originating from the GOP socio-economic agenda.
He highlighted the key role that third parties can play in setting up new terminals and import of RLNG to mitigate the current shortfall in a demand-supply situation on a sustainable long-term basis.
MD SNGPL was categorical that the Company will no longer be acting as a monopoly player and will be promoting a level playing field for all including itself.
He highlighted that sector is in the process of being opened up in line with the GOP reform agenda to address the energy shortfall in the Country in the shortest possible period. This will also mitigate the sharp decline in indigenous gas supplies in the Country.
Agreements with Third Party Terminal Operators under gas sector Reforms
He highlighted that Agreements with Third Party Terminal Operators are near execution after the settlement of most outstanding issues.
Third-party gas is already being transported by SNGPL under the TPA regime for provision to individual consumers.
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These steps will contribute toward securing energy supplies for growing domestic demand at competitive prices. Enhancing competition in the market will also promote economic growth.
MD SNGPL noted that liberalization of the market is a gradual phenomenon. He also stressed addressing issues of subsidies while protecting the interest of all the stakeholders.
He further emphasized the use of renewable energy sources in the Country which can effectively bring down the cost of energy in the Country. Currently, Renewable energy accounts for less than 1% of our energy requirements.
