hydrabadi_arab
Trusted Member
ISLAMABAD: The government is moving to dismantle the state-run structure of its natural gas sector, unveiling a World Bank-backed roadmap that would break up the country’s two dominant gas utilities and open the market to private competition for the first time.
Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting Tuesday with World Bank Country Director Bolormaa Amgaabazar to review the plan, which calls for splitting Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited into separate transmission, distribution and energy businesses, ending decades of vertically integrated state control over gas supply.
Malik said the roadmap, developed by the Petroleum Division with World Bank technical assistance, will be finalised for submission to Prime Minister Shehbaz Sharif by the end of August for approval, after which implementation would begin in phases.
The plan envisions a competitive gas market overseen by a strengthened Oil and Gas Regulatory Authority (Ogra), which will take on an expanded role in policing fair competition and market conduct as private companies gain greater access to exploration, trading and distribution segments long dominated by the Sui companies.
Malik said deregulation must be paired with a robust regulatory framework to ensure transparency and consumer protection. He called for overhauling the sector’s subsidy system, including redefining which customers qualify as “protected” and reducing distortions in gas pricing, with the ultimate goal of moving towards a single market-clearing price.
Officials said the reform package includes a Gas Market Evolution Plan, an investment roadmap, a sector financial model, and legal and regulatory analyses, along with a capacity-building programme for Ogra.
The government projects the overhaul will improve energy security, reduce cross-subsidy burdens, deliver more transparent pricing for industrial users, and open new investment and employment opportunities across the gas value chain, while restoring the Sui companies to financial sustainability. Representatives of SNGPL, SSGCL and Ogra attended the meeting alongside the World Bank delegation.
Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting Tuesday with World Bank Country Director Bolormaa Amgaabazar to review the plan, which calls for splitting Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited into separate transmission, distribution and energy businesses, ending decades of vertically integrated state control over gas supply.
Malik said the roadmap, developed by the Petroleum Division with World Bank technical assistance, will be finalised for submission to Prime Minister Shehbaz Sharif by the end of August for approval, after which implementation would begin in phases.
The plan envisions a competitive gas market overseen by a strengthened Oil and Gas Regulatory Authority (Ogra), which will take on an expanded role in policing fair competition and market conduct as private companies gain greater access to exploration, trading and distribution segments long dominated by the Sui companies.
Malik said deregulation must be paired with a robust regulatory framework to ensure transparency and consumer protection. He called for overhauling the sector’s subsidy system, including redefining which customers qualify as “protected” and reducing distortions in gas pricing, with the ultimate goal of moving towards a single market-clearing price.
Officials said the reform package includes a Gas Market Evolution Plan, an investment roadmap, a sector financial model, and legal and regulatory analyses, along with a capacity-building programme for Ogra.
The government projects the overhaul will improve energy security, reduce cross-subsidy burdens, deliver more transparent pricing for industrial users, and open new investment and employment opportunities across the gas value chain, while restoring the Sui companies to financial sustainability. Representatives of SNGPL, SSGCL and Ogra attended the meeting alongside the World Bank delegation.
