ISLAMABAD: The authorities is shifting to dismantle the state-run construction of its pure gas sector, unveiling a World Bank-backed roadmap that will break up the nation’s two dominant gas utilities and open the market to personal competitors for the primary time.
Minister for Petroleum Ali Pervaiz Malik chaired a high-level assembly Tuesday with World Bank Nation Director Bolormaa Amgaabazar to overview the plan, which requires splitting Sui Northern Gas Pipelines Restricted and Sui Southern Gas Firm Restricted into separate transmission, distribution and power companies, ending many years of vertically built-in state management over gas provide.
Malik stated the roadmap, developed by the Petroleum Division with World Bank technical help, might be finalised for submission to Prime Minister Shehbaz Sharif by the tip of August for approval, after which implementation would start in phases.
The plan envisions a aggressive gas market overseen by a strengthened Oil and Gas Regulatory Authority (Ogra), which can tackle an expanded function in policing truthful competitors and market conduct as personal corporations achieve higher entry to exploration, buying and selling and distribution segments lengthy dominated by the Sui corporations.
Malik stated deregulation should be paired with a strong regulatory framework to guarantee transparency and client safety. He known as for overhauling the sector’s subsidy system, together with redefining which clients qualify as “protected” and lowering distortions in gas pricing, with the final word objective of shifting in direction of a single market-clearing worth.
Officers stated the reform package deal features a Gas Market Evolution Plan, an funding roadmap, a sector monetary mannequin, and authorized and regulatory analyses, together with a capacity-building programme for Ogra.
The federal government initiatives the overhaul will enhance power safety, cut back cross-subsidy burdens, ship extra clear pricing for industrial customers, and open new funding and employment alternatives throughout the gas worth chain, whereas restoring the Sui corporations to monetary sustainability. Representatives of SNGPL, SSGCL and Ogra attended the assembly alongside the World Bank delegation.
