Gas losses

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It is hoped that Sui Southern Gas Company’s (SSGC) impressive performance last year, adequately reflected in shareholder appreciation, will push more proactive measures as another winter of inadequate gas supply sets in. All eyes will be on the $200 million natural gas efficiency project with the world bank, designed to bring about a phased reduction in unaccounted for gas losses over a five year period by rehabilitating approximately 5,000 kms of ‘aging pipelines’.
In the gas sector, like others where supply-demand dynamics are upset, it is extremely important to cut unnecessary line losses in conjunction with acquiring fresh supply sources and routes to limit downside pressure on industry and households. With the summer crippling industry, manufacturing and individuals alike due to inefficient electricity management, gas shortage over the winter is set to further retard far too many once-productive growth engines. The SSGC has embarked on the right course with the world bank program, along with fast track LNG import through a third-party regime, netting 1.4 billion cubic feet gas by ’12. These are prime examples that with necessary political will present, supply bottlenecks can be overcome in time to protect the economy’s lifeline in the near to medium term.
Such steps are important not just from the economic point of view. They also have a direct bearing on the ruling party’s political fortunes. As noted often in this space, electioneering will gain momentum hereon. The gas shortage issue has been gathering pace for some time now, actually since electricity was still the prime concern, with imminent gas shortage further upsetting producers and households. Yet the world on the street is that Islamabad has been usually slow in reacting. While it is understood that there will be considerable time lags between announcement of adequate measures and on-ground results, those at the helm must be seen proactively posturing against unfair shortages instead of lazily reacting to emergencies.