Gas utilities fail to meet loss cutting targets
Despite unprecedented hike in international oil and gas prices and resultant increase in import bill of two essential commodities, the two gas utilities have failed to control system losses against regulatory targets approved by the government. Over the last three years (2019-22), both the gas utilities — Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) — have not been able to achieve loss reduction targets (unaccounted for gas, better known as UFG) set by the Oil & Gas Regulatory Authority (Ogra) and approved by the federal cabinet, according to a three-year performance report released by the petroleum division. Pakistan LNG import bill surged by 91pc in fiscal year 2021-22 ending June 30, 2022 to $4.99bn when compared to FY2020-21 as global prices made new records even though the number of LNG import cargos remained on the lower side. Pakistan’s total petroleum sector imports also jumped to $23.32bn in July-June 2021-22, up 105pc 96pc. Besides direct imports, the prices of country’s domestic gas and crude are linked with international crude prices.