Our gas woes

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SNGPL blames OGRA, OGRA blames SNGPL

Pakistan’s energy problem isn’t a cosmetic one; it runs deeper, much deeper, at system wide issues. Unlike lean and efficient organisations, ours are large and cumbersome one, specifically so when they fail to perform at optimal level. With a rapidly growing urbanisation, the country is facing gas shortage even though it has vast resources of gas and has a neighbour that is willing to provide the same.

Considering the government’s propensity to turn a blind eye towards an issue, even as endemic as energy crisis, the statement by Advisor to Prime Minister on Petroleum Dr Asim Hussain to the National Assembly’s Standing Committee on Petroleum and Natural Resources that the Sui Northern Gas Pipelines Limited (SNGPL) was on the verge of financial default and hadn’t even have enough money to pay salaries to its employees, shouldn’t really surprise anyone. However, what is surprising is who the minister has blamed for this situation: the Oil and Gas Regulatory Authority (OGRA). He also said that the PM had been requested to provide subsidy to continue the functions of the organisation.

Laying the blame on a regulatory body is not going to cut it, that much Dr Asim should know at least. The regulator is not responsible for how the SNGPL operates. It is the gas companies themselves who are to be blamed for this sorry state of affairs. Despite repeated warnings by the regulatory body, they have not been able to stop gas theft, system wide leakages and corruption in the department. Against all the rules of propriety, OGRA allowed SNGPL to recover gas theft and distribution losses from the registered consumers, OGRA Chairman Saeed Khan said. The step, prima facie, seems helping the public entity but in fact it is a dangerous trend as it would make it lethargic enough to lose any interest in plugging the leakages, and dependent on subsidy and government funding.

Public entities seem to play tag when something goes wrong. Nobody accepts the blame and just holds the other one responsible. This has to stop, someone has to take responsibility and work out a way to come out of the situation. Unless they do so, not even big projects like the Pakistan-Iran gas pipeline would help. The gas pipeline, construction work on which would be completed in 15 months, will provide the missing pulse in our energy lifeline. However, unless we put our house in order, we are only bound to fail in maximising benefits out of a project like this one.