SNGPL and SSGCL will spend Rs. 64.2 billion on distribution network—will create gas shortage – Research Snipers

SNGPL and SSGCL will spend Rs. 64.2 billion on distribution network—will create gas shortage

Despite the issues in supply the two major gas companies SNGPL and SSGCL are now spurring to spend Rs. 64.209 billion on transmission and distribution infrastructure during the current fiscal year.

This means new gas connections across Punjab and Sindh, the two state companies are looking forward to dispatching 414,723 new gas connections during the fiscal year 2017-18, but the national assembly standing committee on petroleum and natural gas resources has advised the companies to deliver 2 million new gas connections according to—APP.

While the money is being spent on distribution and transmission networks, nothing is being discussed on demand, supply, and production capacity. During winter civilians in the province of Punjab hit by massive gas outage with millions of people burning coal, wood and expensive LPG to run their kitchens.

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The companies have planned to invest Rs. 12,702 million on transmission projects, Rs. 43,045 million on distribution projects and Rs. 8,462 on other projects.

While answering the question, sources said, SNGPL issued 1.5 million new gas connections during the PML-N government since 2013, and hopefully, the figure would reach 2.5 million by the end of the government’s tenure.

Such an alarming situation for the entire public, the speed of dispatching connections seems much faster than the actual supply, government and companies should hold their horses and think seriously about the production and create a balance between demand and supply for long term success.

According to economic survey of Pakistan in 2015, the demand and supply gap in Pakistan widened across Punjab and Sindh, the total supply was 4 billion cubic feet per day (4BCFD) while the demand stationed at (8BCFD). This was all due to mismanagement of both the companies and the government by spending on distribution and transmission networks just to give out new connections and not on actual production.