Senate Committee pushes for urgent review as local gas fields shut down

ISLAMABAD: The local gas fields of Pakistan are facing shutdowns as the nation’s import of LNG from Qatar—entailing a contractual obligation for 10 cargoes each month—is putting considerable strain on the country’s outdated pipeline system, as revealed during a Senate committee meeting on Monday.

During the briefing, officials informed lawmakers that the reliance on imported LNG has led to a decline in domestic gas production. They also expressed concerns about the deteriorating condition of the pipelines, which are already under significant pressure and are increasingly at risk of ruptures. Furthermore, the inadequate storage facilities exacerbate the challenges of effectively managing supply, reported The News.

The Senate Standing Committee on Petroleum, chaired by Senator Umar Farooq, pressed for immediate oversight. The committee called for a comprehensive daily assessment of drilling operations and associated costs. Senator Farooq suggested the preparation of an in-depth report covering gas extraction, drilling frequency, and project timelines to evaluate the sustainability of the sector.

The committee raised alarms regarding the delays in the Iran-Pakistan gas pipeline, highlighting that, despite development projects facing restrictions, goods continue to flow from Iran without facing sanctions.

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Lawmakers also reviewed instances of financial and administrative irregularities within the oil and gas sector. They criticised the Oil and Gas Development Company Limited (OGDCL) for not issuing a production bonus, despite a Supreme Court ruling mandating it. Officials contended that OGDCL was not obligated to comply, while the Petroleum Ministry had yet to re-evaluate the court’s verdict.

Moreover, the committee was briefed on significant financial and administrative discrepancies, including findings from inquiries conducted over the last three years. It was reported that embezzlement of pipeline materials at the Central Base Store (CBS) in Manga caused a financial loss of nearly Rs380 million. Senator Umar Farooq sought clarification on this loss, and officials confirmed the reported amount.

In addition, the committee learned about the Bannu West project, where the theft of civil materials led to an estimated financial loss of Rs5 million.

There were also reports of misappropriation of scrapped industrial materials at CMS Lahore, with recovered losses amounting to approximately Rs28 million.