Islamabad - The Circular Debt of Liquefied Natural Gas (LNG) has reached to Rs104 billion during last three years, and if RLNG supply continues to domestic sector, the circular debt will likely to reach to around Rs194 billion this year.
In the meeting of the Senate Standing Committee on Petroleum, senators raised the issue of gas load-shedding in Sindh, Balochistan and KP and said the gas load-shedding in the gas producing provinces is violation of Article 158 of the constitution which says that local areas get precedent over other parts of the country in terms of distribution of natural resources. The committee was further informed that indigenous gas supplies have been reduced by around 234 MMCFD during the last three years of PTI government. The committee that met under the Chairmanship of Senator Muhammad Abdul Qadir, was briefed by the Petroleum Division (Ministry of Energy) regarding gas shortages/crisis in the country during last two years and steps taken to overcome the same.
Secretary Petroleum Division, Dr Arshad Mahmood, told the committee the government is buying LNG on cash payment and selling it on credit, and during the last three years the circular debt of the LNG only has reached to Rs104 billion and likely to increase by Rs90 billion during the ongoing year if the practice of providing the imported gas to domestic consumers continues. Chairman of the committee and members questioned secretary petroleum, if this is the case then why are you providing RLNG to the domestic consumers? They have asked the secretary to not provide the RLNG to domestic sector. 
It was informed that during the summer domestic gas demand reduces but demand of power sector surges which is met by ordering maximum possible volumes of RLNG. Whereas, during the winter season, domestic gas demand increases over three times on SNGPL’s network and two times on SSGC’s network due to use of water and room heaters and there remains a shortfall even after maximum orders of RLNG by SNGPL. Therefore, load management is carried out to mitigate the demand supply gap.
The committee was informed that SSGC in its franchise area of Sindh and Balochistan has been facing severe shortfall of gas which is due to depleting gas fields and no new major gas discoveries. The meeting was informed that SNGPL has ordered maximum RLNG available capacity of 1200 MMCFD. Winter gas Load Management Plan is being prepared which would be presented to the cabinet for approval; further, all out efforts shall be made to ensure maximum supply of gas to different sectors. 

Senator Shamin Afridi expressed his reservations regarding gas load-shedding in KP province. Senator questioned as why there is load-shedding in KPK when province has surplus gas production. Senator Fida Muhammad also weighed in on the situation and lamented the role of SNGPL in distribution of gas supplies between the provinces.