ISLAMABAD: Balochis­tan has sought from the centre a bigger share in proposed imported liquefied natural gas (LNG) at reduced rate as a partial compensation for decades of cheap ‘Sui gas’ consumed across the country.

The provincial government has also requested the relevant federal ministries to share detailed concept papers of Gwadar being developed into an LNG hub and its transportation through pipelines to Sindh and upcountry so that it could formally take up the matter with the country’s political leadership at appropriate forums, official record suggests.

The projects include Gwadar LNG terminal, Gwadar-Nawabshah coastal gas pipeline and related infrastructure. The Balochis­tan government considers enhanced gas supplies at cheap rate a critical tool for political mainstreaming of the neglected province.

Also read: Federal cabinet meeting approves import of electricity, LNG

The provincial leadership is currently pursuing the issue through the Ministry of Inter-Provincial Coordination (IPC) for its inclusion in the agenda of Council of Common Interests (CCI), a senior Balochistan government official told Dawn in a background discussion.

“For almost half a decade, our gas (produced mainly from Sui field) fuelled ovens and burners of urban centres in Punjab and Sindh almost free of cost. It will just be fair to compensate deprivation of the people of Balochistan through increased gas supply and cheaper rates,” he said.

He said Balochistan now contributed about 17 per cent of natural gas to the national system while its own consumption was only 2pc. “Balochistan is entitled to 17pc gas share. But if that is not practical it should at least be given 10-12pc of total gas supply.”

That has been officially advocated.

“Keeping in view low coverage of gas network in Balochistan as compared to national average, the province (Balochistan) may be given preference in terms of distribution and access to the additional quantum to be injected in national transmission network after re-gasification of LNG,” say an official communication.

The IPC ministry has conveyed the provincial government’s sentiments to the federal government, saying the Gwadar-Nawabshah LNG terminal and pipeline project are deemed to be helpful in mitigating the prevailing energy shortages in the country by importing LNG, re-gasification and transportation from southern ports to the upcountry, linking Gwadar with the gas system in Sindh and eventually with the national transmission network.

The IPC ministry has also conveyed to the centre a request of the Balochistan government for a gas price freeze for the province. “In the event of any likely price escalation after procurement of LNG at weighted average cost by gas utilities through services agreements with the terminal operators, consumers in Balochistan may be granted exemption from enhanced rates in view of impact of environmental concerns and proximity with the proposed terminal,” it wrote.

A federal government official said the share in gas supply on the basis of production was not practical at this stage because of constitutional requirements protecting the existing gas commitments and contracts.

Therefore, he said, no province was getting what it produced, despite many changes in natural gas ecosystem. He explained that Sindh produced almost 68pc of the country’s natural gas but was allowed to consume only 45pc. On the contrary, Punjab produces only 5pc but is consuming almost 46pc. Khyber Pakhtunkhwa has 9pc share in the total output but about 7pc consumers. Balochistan consumes only 2pc of its contribution of 17pc.

Balochistan has raised the issue following a decision taken last month by the Economic Coordination Committee of the cabinet which allowed construction of 700km Gwadar-Nawabshah pipeline of 42 inches to transport LNG and also facilitate the Iran-Pakistan pipeline project if international sanctions on Tehran go.

The terminal at Gwadar will have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas with two compressor stations over a 700km pipeline.

Article 158 of the original 1973 Constitution promised preference in gas use to a province of its production, but the article remained frozen for about 40 years as the Sui gas field maintained a declining trend.

Article 172 (3) under the 18th Amendment vested natural resources within a province or territorial water adjacent thereto jointly and equally in that province and the federal government.

Published in Dawn December 8th , 2014