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Senate Standing Committee Highlights Critical Issues in Gas Supply and Refinery Policies, Reviews Reko Diq Progress

Islamabad: The Senate Standing Committee on Petroleum, chaired by Senator Umer Farooq, met to discuss critical issues related to gas supply, refinery policies, and progress on the Reko Diq project. Committee members present included Senators Quarat-ul-Ain Marri, Abdul Wassy, Rana Mehmood-ul-Hassan, Mir Dostain Khan Domki, Hidayat Ullah Khan, Jam Saifullah Khan, and Amir Waliuddin Chishti. Senator Bilal Ahmed Khan attended as the mover of the meeting.

The Committee expressed strong displeasure over the absence of the Minister for Petroleum and urged his presence in future meetings. Concerns were raised over adhocism in the Petroleum Ministry and the lack of complete data with relevant officials.

Addressing low gas pressure and prolonged outages in Quetta and Sindh, the Committee questioned the performance of Sui Southern Gas Company (SSGPL) and Sui Northern Gas Pipeline Limited (SNGPL). Chairman Senator Umer Farooq emphasized that, under Article 158 of the Constitution, natural gas must be supplied to provinces where it is produced. Officials informed the Committee of a nationwide gas shutdown from 10:00 PM to 5:00 AM as a load management measure and ongoing pipeline rehabilitation in Sindh and Balochistan. Issues such as tampered gas meters and unregulated use of suction compressors in Quetta were highlighted, with directions to ensure permanent solutions.

The Reko Diq project was also reviewed. Secretary Petroleum reported that approximately 20% of groundwork is complete and production is expected by end-2028. The Committee expressed concern over the absence of Barrick representatives and directed that an operational team member attend future meetings. CSR initiatives by Barrick in Balochistan, including provision of safe drinking water and educational facilities, were discussed, along with training of 27 local youth at international institutions. The Chair emphasized that local employment must be prioritized.

The Committee reviewed administrative matters of Jamshoro Joint Venture Limited (JJVL) and directed officials to provide a detailed historical briefing at the next meeting. Previous directives concerning Kerosene, LDO, and Solvents were examined, with the Chair highlighting environmental risks from adulteration. OGRA and DG (Oil) were instructed to issue final warnings and cancel marketing licenses of non-compliant companies.

Greenfield and Brownfield refinery policies were discussed, with concerns over low investment due to sales tax issues. The Chair directed Finance and Petroleum Ministries to jointly propose an investment-friendly framework.

Employee-related matters at OGDCL and new gas connections in Khyber Pakhtunkhwa were also addressed. The Ministry informed the Committee that approximately 70% of new gas connection requests in KPK have been processed and meters installed.