ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a high-powered committee to investigate the causes of unusually high Unaccounted-for-Gas (UFG) losses being incurred by Sui Southern Gas Company Limited (SSGCL) in Balochistan and recommend short- and long-term measures to ensure the company’s financial and operational sustainability in the province.
The committee, headed by Deputy Prime Minister and Foreign Minister Ishaq Dar, will examine the factors behind SSGCL’s persistent UFG losses and recommend corrective measures to bring them within the benchmark prescribed by the Oil and Gas Regulatory Authority (OGRA).
The committee comprises Rana Sana Ullah Khan, Adviser to the Prime Minister on Political and Public Affairs and Inter-Provincial Coordination; Jam Kamal Khan, Minister for Commerce; Khalid Hussain Magsi, Minister for Science and Technology; Rana Mubashar Iqbal, Minister of State/Minister for Public Affairs Unit; Federal Minister for Petroleum Ali Pervaiz Malik; Secretary Petroleum Division; Secretary Ministry of Interior; and Chief Secretary Balochistan.
The committee’s formation follows concerns raised by the Petroleum Division over the growing UFG losses of SSGCL in Balochistan and their implications for the financial sustainability of the gas utility.
Under its Terms of Reference (ToRs), the committee will conduct a detailed review of SSGCL’s UFG losses in Balochistan over the four-year period from FY2022-23 to FY2025-26 and identify the underlying causes.
It will also examine whether SSGCL’s Estimated Revenue Requirements (ERR) for FY2026-27 adequately reflect the actual UFG losses being incurred in Balochistan and their associated financial impact.
UFG refers to gas that enters a distribution network but is not accounted for through billed consumption. Such losses may result from technical inefficiencies, pipeline leakages, inaccurate metering, operational shortcomings, theft and unauthorised consumption.
Persistent high UFG levels place significant financial pressure on gas utilities, as the cost of unaccounted-for gas ultimately affects the company’s revenues and broader gas-sector finances.
The committee has been tasked with proposing immediate measures to reduce UFG losses and enable SSGCL to sustain its operations in Balochistan. It will also develop long-term measures aimed at bringing losses down to the regulatory benchmark set by OGRA.
The review will assess the extent to which SSGCL’s losses are linked to technical, commercial, security and other operational factors. Balochistan’s vast geographical spread and security challenges are expected to be among the issues considered during the assessment.
The government expects the committee’s findings to provide a comprehensive assessment of SSGCL’s UFG situation and help establish a sustainable framework for reducing losses while ensuring reliable gas distribution services in the province.
The committee will submit its recommendations to the federal government, covering both immediate relief measures for SSGCL and structural reforms required to bring UFG losses in Balochistan within the prescribed regulatory limits.
Story by Mushtaq Ghumman
