centre,sindh disagreement continues over proposed gas pricing formula

ISLAMABAD: The federal government and the Sindh government are at loggerheads over the proposal to include the price of imported LNG in the average weighted cost of gas (WACOG) for Sindh.


The differences between the two (centre and Sindh) emerged after a claim of Special Assistant to Prime Minister on Petroleum Nadeem Babar that Sindh Chief Minister Syed Murad Ali Shah had “agreed” to the inclusion of RLNG in the WACOG formula of local natural gas during the last meeting of the Council of Common Interests (CCI).

The Sindh CM, in a letter to the prime minister on January 8, had termed the claim as “very disturbing”, saying it had created unrest amongst the people of Sindh as this news was carried in the national press.

CM Murad had also requested the PM to stop Nadeem Babar from any attempt to include RLNG into existing WACOG formula for tariff determination and to ensure supply of locally produced natural gas to consumers in Sindh as per demand and as per their constitutional right.

He said that Sindh was producing more gas than what it was receiving as its share.

“As per the constitution, Sindh has the first right to use the gas which it produces. Moreover, it is beyond common sense that Sindh should buy expensive gas when it has been producing cheaper gas,” he added.

Meanwhile, the Petroleum Division, while responding to the Sindh CM on Friday, said that the federal government would wish to uphold the positive spirit of CCI meeting wherein it was mutually agreed to reach decisions on the distribution of gas to Sindh in a collaborative manner.

“It is therefore in the interest of Sindh and not just the federation, to arrive at a mutually agreed structure for supplies, distribution & pricing of natural gas in any form to ensure uninterrupted supplies to the country,” said a Petroleum Division’s rejoinder.




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