Private gas market woos investors

The Gastech Exhibition and Conference is being held at the Bangkok International Trade & Exhibition Centre from September 14 to 17. preview, the event has attracted around 7,000 delegates, 50,000 attendees and 1,000 exhibiting companies from 49 countries.

Speaking to media, UGDC Chief Executive Officer Ghiyas Abdullah Paracha said the company was seeking foreign investment and joint ventures to develop dedicated gas distribution networks in Pakistan and provide consumers with a more reliable and affordable supply.

"We appreciate Prime Minister Shehbaz Sharif and Petroleum Minister Ali Pervaiz Malik for opening up the gas sector to private entities," Paracha said. He added that the government's decision to allocate 35% of gas to private parties was an important step towards deregulating the gas distribution sector.

At present, gas distribution in Pakistan is largely handled by state-owned Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC). UGDC is seeking to establish additional private distribution infrastructure in partnership with international companies, including US-based firms.

Paracha said private-sector investment could help reduce gas losses, improve supply efficiency and ultimately lower costs for consumers. He said UGDC's strategy was based on attracting foreign direct investment and forging business-to-business joint ventures without relying on government subsidies.

He said UGDC had already operationalised three dormant gas fields by processing raw gas into pipeline-quality supply. The company plans to expand its gas purification infrastructure with international partners and integrate stranded gas reserves into the national grid.

The CEO said UGDC was also exploring LNG import arrangements and advocating the development of commercial underground gas storage facilities to address seasonal shortages, supply fluctuations and international price variations.

Highlighting the problem of unaccounted-for-gas (UFG) losses, Paracha said the company planned to develop targeted private pipeline infrastructure for large industrial consumers and major residential schemes, particularly through joint ventures with foreign investors.

He said UGDC was also inviting international energy companies to invest in Pakistan under the newly deregulated gas-sector framework, building on its previous engagement with global energy companies including Exxon. Mobil, Qatar. Energy, Conoco.

Phillips and Trafigura. Paracha maintained that greater private-sector participation would not only reduce energy costs and improve industrial competitiveness but would also increase government revenues through pipeline transit tariffs and taxes. "Greater market liberalisation will lower energy costs for end-consumers, enhance industrial competitiveness and usher in a resilient, market-driven energy future for Pakistan," he said.