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                        <title>The Express Tribune</title>
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                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
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			<title>APTMA warns of massive unemployment</title>
			<link>https://tribune.com.pk/story/1007153/gas-supply-aptma-warns-of-massive-unemployment</link>
			<comments>https://tribune.com.pk/story/1007153/gas-supply-aptma-warns-of-massive-unemployment#comments</comments>
			<pubDate>Wed, 09 Dec 15 23:07:02 +0500</pubDate>
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				<![CDATA[our.correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=1007153</guid>
			<description>
				<![CDATA[Punjab chief says textile mills will be forced to shut down]]>
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				<![CDATA[Continuing to get irked by one development after another, All Pakistan Textile Mills Association (Aptma) Punjab Chairman Aamir Fayyaz has now warned that massive unemployment would be in the offing if the Sui Northern Gas Pipelines Limited (SNGPL) discontinued gas supply to textile mills in Punjab.


The SNGPL has informed Aptma Punjab that gas supply to mills could be discontinued in the prevailing winter season as pressure on limited resources piles up. Addressing a press conference on Wednesday, the Aptma official said gas supply to textile mills was already low in November.

CPEC to cause unemployment in Gilgit-Baltistan

“The actual gas consumption of Punjab-based textile industry is equal to 60 million cubic feet per day (mmcfd), which is 5% of 1,200 mmcfd,” he claimed. He said 200,000 textile workers have lost jobs in the last five years.

He also criticised the government for the 40% reduction in cotton crop, claiming that a lack of proper research resulted in the supply of substandard seed to farmers.

“The government blames the weather for crop failure instead of conceding its own shortcomings,” he said, adding that Aptma was paying an annual amount of Rs700 million for research on cotton seed, but all in vain.

Public perception: Unemployment, corruption termed major challenges

“Nearly 40 mills have already been closed down during the last four months but the promises made by both the prime minister and finance minister have yet to materialise,” he said

“The government has imposed Rs40 billion in new taxes on IMF instructions against a loan of $500 million,” he said, noting that the textile industry has already lost $800 million worth of exports.

Published in The Express Tribune, December 10th,  2015.

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			<title>Gas supply to CNG stations considered wastage</title>
			<link>https://tribune.com.pk/story/560780/gas-supply-to-cng-stations-considered-wastage</link>
			<comments>https://tribune.com.pk/story/560780/gas-supply-to-cng-stations-considered-wastage#comments</comments>
			<pubDate>Sat, 08 Jun 13 20:41:17 +0500</pubDate>
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				<![CDATA[zafar.bhutta]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=560780</guid>
			<description>
				<![CDATA[Inefficient captive power plants may also face disconnection.]]>
			</description>
			<content:encoded>
				<![CDATA[The new government may place a ban on the consumption of compressed natural gas, which is considered wastage of gas, in a bid to divert the key resource to power plants to ease energy shortages.


According to sources, Federal Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, in a meeting on Saturday, said he considered CNG filling stations the most inefficient way of consuming gas and termed it ‘wastage’.

Captive power plants, which were getting 450 million cubic feet per day (mmcfd) of gas, were also inefficient and could face disconnection of gas supply, sources quoted meeting participants as saying.

The National Accountability Bureau has already expressed its view that gas supply to inefficient captive power plants at the cost of efficient power plants is a criminal act.

In the meeting, Abbasi announced that the system of giving gas connections on priority would come to an end and connections would be given on merit. Gas would be provided to the consumers which have valid gas supply agreements, he said.



According to a statement issued here, the minister stressed that natural resources would be utilised in the most efficient manner to cope with the energy crisis in the country. After domestic and commercial consumers of gas, power producers would be the focus of attention, he said.

“Power generation is the most efficient use of this scarce natural resource,” he said.

Officers of the petroleum ministry will come up with objective and well thought out work plans and proposals with complete information and data so that these could be made part of policymaking.

The minister was briefed about the working of the ministry, organisation, natural resources and their allocation to various sectors.

Giving a detailed briefing, the petroleum secretary expressed concern over the losses caused by gas theft and leakage, called unaccounted-for-gas, and said the issue should be addressed at the earliest.

He underlined the need for consistency of policies as frequent policy shifts harmed the interests of investors and without investment no enterprise could survive.

“We will work in close coordination with the Ministry of Finance and Ministry of Water and Power to resolve the power crisis, which is the top most priority of our government,” he said.

According to sources, Sui Southern Gas Company (SSGC) officers, who were present in the meeting, said unaccounted-for-gas level would drop to 8.5% this year compared to 10.8% last year.

They argued that Ogra was treating gas theft by unregistered consumers as unaccounted, which was unfair. Gas sales in Balochistan constituted 5% of total gas sales, but consumers there did not pay their bills, which contributed 3% to the UFG.

Published in The Express Tribune, June 9th, 2013. 

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			<title>Helping the fertiliser sector</title>
			<link>https://tribune.com.pk/story/479336/helping-the-fertiliser-sector</link>
			<comments>https://tribune.com.pk/story/479336/helping-the-fertiliser-sector#comments</comments>
			<pubDate>Thu, 13 Dec 12 17:49:26 +0500</pubDate>
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				<![CDATA[saqib.nasir]]>
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			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=479336</guid>
			<description>
				<![CDATA[Ongoing gas curtailment is taking a heavy toll on agriculture sector and also on the economy as a whole.]]>
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				<![CDATA[Ever since the start of the gas shortage in 2010, production at all four fertiliser plants operating on the Sui Northern Gas Pipelines Limited network, i.e. Pak-Arab Fertilisers Limited, Agritech Limited, Engro Fertiliser Limited and Dawood Hercules are subject to frequent and unannounced shutdowns.

In 2011, out of the four plants operating on the Sui Northern Gas Pipelines network, Pak-Arab Fertilisers Limited received a total of 8,278 million cubic feet (mmcf), Dawood Hercules 6,513 mmcf, Agritech 3,142 mmcf and Engro 12,643 mmcf. In 2012, according to an agreement with Sui Northern, the fertiliser plants were to receive gas on 15 days rotation — however, as the situation worsened even this agreement was not followed. In 2012, the total gas received so far (for the January-November period); Engro 6,490 mmcf, Pak-Arab 4,941 mmcf, Dawood Hercules 2,788 mmcf and Agri-tech 2,655 mmcf. During the second half of 2012 gas supply to plants was as follows; Agritech 30 days, Pak-Arab 30 days and Dawood Hercules 15 days.

Pak-Arab Fertilisers Limited, Agritech and Dawood Hercules have suffered huge losses owing to gas curtailments during the current year. Being solely dependent on the SNGPL network for its feedstock gas, Pak-Arab alone has not produced for over 250 days out of a total of 325 days of 2012. Engro Fertilisers Limited, a subsidiary of Engro Corporation, has the advantage of two independent sources for its gas supply. Hence it was able to post reasonable profits in 2011, i.e., Rs4.5 billion. In 2012, Engro’s one plant continues uninterrupted operations while others, dependent on the SNGPL, are likely to report losses. Another important fact to note is that among the plants operating on the SNGPL network, Engro is the single largest consumer and requires 100 mmcfd, which is almost as much as the cumulative requirement of the other three (which is 135 mmcfd).

It is important to note that none of the fertiliser plants were operating for the promised period as laid down in the agreement with SNGPL. Being an agriculture-based economy, the importance of fertilisers need cannot be overstated. The question arises that given the significance of the sector, why is it that the priority of the fertiliser sector which was at number two behind domestic users under the gas policy of 2005 has been now relegated to number four behind power and industry. The total number of people whose livelihood is dependent on these plants is over 10,000, and in addition thousands more connected to the business also have their incomes at stake.

The ongoing gas curtailment is taking a heavy toll on the agriculture sector and also on the economy as a whole. Increasing prices of urea as a consequence of this, levy of general sales tax and imposition of the infrastructure development cess have all led to a significant increase in input costs burdening the farmer and threatening food security since urea consumption continues to decline.

On the other side, the economy is forced to bear the cost of importing fertilisers when the local capacity is lying idle. During 2011 and till June 2012, the government has imported over 2.2 million tons of urea by spending almost Rs100 billion and another Rs75 billion was spent on providing a subsidy on the imported fertiliser. In the last five years, the fertiliser industry has invested over five billion dollars which is among the highest by any sector in the country. If such projects continue to suffer, future foreign investments may also be at risk.

Published in The Express Tribune, December 14th, 2012.

&nbsp;]]>
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			<title>CNG price conundrum: OGRA proposes Rs13 per kg hike; SC to consider on Monday</title>
			<link>https://tribune.com.pk/story/467379/cng-price-conundrum-ogra-proposes-rs13-per-kg-hike-sc-to-consider-on-monday</link>
			<comments>https://tribune.com.pk/story/467379/cng-price-conundrum-ogra-proposes-rs13-per-kg-hike-sc-to-consider-on-monday#comments</comments>
			<pubDate>Sat, 17 Nov 12 19:42:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=467379</guid>
			<description>
				<![CDATA[Move proposed to keep CNG pumps operational; authority wants margins reduced.]]>
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			<content:encoded>
				<![CDATA[The reprieve provided to customers by the slash in CNG prices might be coming to an end.


The Oil and Gas Regulatory Authority (Ogra) on Saturday proposed a hike in CNG prices of up to Rs13 per kilogramme (kg) to keep CNG stations operating in the country.

The Supreme Court will consider the proposed CNG prices plan in its hearing scheduled on Monday, November 19.

In its orders issued on October 25, the Supreme Court directed CNG prices to be cut after declaring the mechanism of basing CNG prices on the price of petrol as illegal.

Ogra subsequently placed a price cut of Rs30 per kg, ending a memorandum of understanding between the government and the CNG Association on a formula for the operating cost of CNG stations. Subsequently many stations shut down due to the lower prices, saying that they were not even able to pay gas utility bills.

In its report submitted to the Supreme Court on Saturday, in line with the final forensic report conducted by a consultant, Ogra recommended the price increase of up to Rs13 per kg for Region-1 – comprising Khyber-Pakhtunkhwa, Balochistan and the Potohar Region (Rawalpindi, Islamabad and Gujar Khan) and Rs11.56 per kg increase in Region-2 – Sindh and Punjab (excluding Potohar Region) to let CNG stations remain operational.

Presently, consumers are being charged Rs61.64 per kg in Region-1 and Rs54.16 per kg in Region-2. After the proposed increase, the price of CNG in Region-1 will rise to Rs74.64 per kg. In Region-2, the price will rise to Rs65.72 per kg.

Sources said that Ogra had recommended the increase in a bid to keep CNG stations open and prevent consumers from facing hardship.

According to the report, Ogra also proposed to reduce the profit margins of CNG dealers by revising the margins formula. CNG dealers have been receiving margins following the present formula that ensures a 20% rate of return on the total cost of gas, including operating expenses. But the regulatory authority has said that it will be delinked with the cost. According to the report, it has proposed to link the margin for dealers with investment by investors to set up CNG stations.

According to the price slash on October 25, the margin of CNG has already been reduced from Rs11 to Rs6.22 per kg. This margin will be further slashed from the existing Rs6.22 to Rs3.50 per kg following the new profit margin formula, sources added.

Ogra had awarded a contract to a chartered firm, Avais Hyder Liaquat Nauman, to conduct an audit of 11 CNG stations regarding how much profit they earn to determine the new pricing formula. The audit firm was asked to submit its findings to Ogra within four days. Sources said the recommendations of the audit firm are close to the proposed increase in CNG prices by Ogra.

According to the break-up of the current CNG prices, the government’s tax share in Region-1 is Rs35.89 per kg, which breaks down into Rs11.57 per kg of cross subsidy, Rs7.77 per kg sales tax at a rate of 25%, Rs13.24 per kg for Gas Infrastructure Development Cess (GIDC) and a sales tax on GIDC at a rate of 25%, amounting to Rs3.31 per kg.

Published in The Express Tribune, November 18th, 2012.]]>
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			<title>Tackling gas shortage: High ‘winter tariff’ under consideration</title>
			<link>https://tribune.com.pk/story/423139/tackling-gas-shortage-high-%e2%80%98winter-tariff%e2%80%99-under-consideration</link>
			<comments>https://tribune.com.pk/story/423139/tackling-gas-shortage-high-%e2%80%98winter-tariff%e2%80%99-under-consideration#comments</comments>
			<pubDate>Thu, 16 Aug 12 21:14:39 +0500</pubDate>
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				<![CDATA[zafar.bhutta]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Gas will be expensive by 25% to 50% after short-term LNG import.]]>
			</description>
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				<![CDATA[With the prospect of one billion cubic feet per day (bcfd) of gas shortage looming large in the upcoming winter, the Ministry of Petroleum and Natural Resources is working on a plan to introduce ‘winter tariff’ which will send prices up by 25% to 50% after gas utilities start supplying liquefied natural gas (LNG) through their system.


The plan was unveiled in a high-level meeting held at the Prime Minister’s House on Wednesday and chaired by Prime Minister Raja Pervez Ashraf, which reviewed the overall gas situation in the country.

“Representatives of the Ministry of Petroleum told the meeting that the country will be facing a shortage of 1bcfd of gas in upcoming winter season and LNG import under a short-term plan is the only option available to bridge this shortfall,” a senior official of the ministry told The Express Tribune.

“Sui Southern Gas Company’s Progas terminal can be used to handle LNG imports which can be made as early as December this year under the short-term plan,” he quoted the ministry officials as saying.

According to the official, the expensive gas will also reduce wastage and encourage conservation of gas.

Following LNG imports, there are plans to charge the natural gas consumers a weighted average price by including LNG prices in natural gas prices. This would lead to an increase of 25% in gas tariff in case 500 million cubic feet per day (mmcfd) of LNG was injected into the system, the prime minister was told in the meeting. In case of import of 1bcfd, the gas prices will go up by 50%.

Another participant of the meeting pointed out that the industries of Punjab faced the worst gas shortage in the previous winter and therefore LNG import was an immediate short-term solution to tackle the problem. In this regard, he said, the government was also negotiating with India to reach a deal on LNG supply.

In the face of gas shortage, the fertiliser plants in Punjab were closed, forcing the government to import urea to meet the requirements of farmers. Some independent power plants (IPPs) were also operating on diesel, instead of gas, and producing expensive electricity.

The reasons cited for the acute gas shortage in winters were increased consumption by residences, depletion of existing reserves and no addition of gas from existing and new sources.

A proposal to enhance load-shedding for compressed natural gas (CNG) stations was also floated in the meeting. It also discussed a plan to shut down 15-year-old CNG stations, but no decision was taken, said a meeting participant.

The prime minister decided to constitute a committee to come up with a solution to the crisis. It will be headed by Finance Minister Dr Abdul Hafeez Shaikh and include Information and Broadcasting Minister Qamar Zaman Kaira and Adviser to Prime Minister on Petroleum Dr Asim Hussain. The private sector will also be represented by relevant stakeholders.

Published in The Express Tribune, August 17th, 2012.]]>
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			<title>Legislators blame OGRA for gas crisis</title>
			<link>https://tribune.com.pk/story/347481/legislators-blame-ogra-for-gas-crisis</link>
			<comments>https://tribune.com.pk/story/347481/legislators-blame-ogra-for-gas-crisis#comments</comments>
			<pubDate>Fri, 09 Mar 12 01:31:39 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=347481</guid>
			<description>
				<![CDATA[NA panel considers referring illegal CNG licences case to FIA.]]>
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				<![CDATA[While terming the Oil and Gas Regulatory Authority (Ogra) ‘a state within a state’, parliamentarians slammed the regulator and blamed it for the current gas crisis on Thursday.


MNA Begum Shehnaz Sheikh during the meeting of the sub-body of the National Assembly’s (NA) Standing Committee on Petroleum and Natural Resources alleged that Ogra had been involved in massive malpractice regarding issuance of CNG licences. “I can prove that Ogra officials have even been involved in giving provisional licences in back dates,” Sheikh said.

The sub-body was discussing the illegal issuance of licences to 462 CNG stations despite a ban imposed new CNG stations.

Restructuring of the regulator should be made to ensure transparency in its functions including verification of its officials’ degrees, Sheikh said.

Another member of the sub-committee MNA Chaudhry Muhammad Barjees Tahir observed that there were many cases in which No Objection Certificates (NoCs) were not sought by Ogra, violating Prime Minister Yousaf Raza Gilani’s directives. There would have been no gas crisis if Ogra had not issued illegal CNG licences, he added.

It was one of the options that were discussed in a meeting of the sub-committee of the National Assembly’s (NA) Standing Committee that met on Thursday to probe the issuance illegal CNG licences despite a ban.

The parliamentary panel mulled over sending the case of illegal licence issuance to the Federal Investigation Agency (FIA) for investigation. It was one of the options that were discussed in the meeting.

It was observed during the meeting that the ban was imposed to overcome the gas crisis but Ogra continued issuing licenses. Ogra has also been involved in relocation of CNG stations sites.

Petroleum Secretary Ijaz Chaudhry said that the CNG sector is the largest tax paying sector in the country and therefore the government had no intention to completely close it. However, there should be no further expansion of this sector, he said.

Ogra as well as gas distribution companies are equally responsible for the expansion of CNG stations, Chaudhry said.

He said that he refused to accept pressure from ambassadors of different countries to relax import of CNG cylinders and kits. He also said that gas connections to new towns and villages should be banned to avoid gas crisis.

All Pakistan CNG Association (APCNGA) Ghyias Abdullah Paracha said that the government had formed a policy in 2007 to encourage the use of gas in CNG stations. We have given a proposal to the petroleum ministry to save gas and diverted it to CNG stations, he said adding that closure of 561 CNG stations is a worrying sign for investors.

There is no mention of CNG stations closure for three months in any agreement, he said adding that CNG stations had been closed for 158 days in a year due to gas load shedding and gas supply should be restored immediately to them.

Published in The Express Tribune, March 9th, 2012.]]>
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			<title>Double up: Industry demands gas supply for four days</title>
			<link>https://tribune.com.pk/story/331972/double-up-industry-demands-gas-supply-for-four-days</link>
			<comments>https://tribune.com.pk/story/331972/double-up-industry-demands-gas-supply-for-four-days#comments</comments>
			<pubDate>Sat, 04 Feb 12 21:09:19 +0500</pubDate>
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				<![CDATA[our.correspondent]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[It is getting gas for only 2 days despite PM’s assurance.]]>
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				<![CDATA[The Faisalabad Chamber of Commerce and Industry (FCCI) has demanded gas supply for industrial units for at least four days in a week to save the sector from collapse.


Talking to the media here on Saturday, FCCI President Muzammil Sultan and Vice President Rehan Naseem Bharara voiced concern over two-day gas supply to industrial units in a week and said it would add to the burden of industries.

They said the industrial sector was already teetering on the verge of collapse due to high input costs caused by increase in bank mark-up and oil prices. Continuous outages of gas coupled with low pressure had further aggravated the situation.

They pointed out that Prime Minister Yousaf Raza Gilani had assured gas supply across the board but Sui Northern Gas Pipelines Limited (SNGPL) was reluctant to implement this.

The industrialists claimed that thousands of manufacturing units had been closed down and expensive machinery was gathering rust due to the absence of gas supply. They cautioned that a flood of unemployed people would emerge if more industrial units stopped running due to the shortage of gas.

Published in The Express Tribune, February 5th, 2012.]]>
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			<title>Gas crisis: Govt plans to expand supply, constrain demand growth</title>
			<link>https://tribune.com.pk/story/330062/gas-crisis-govt-plans-to-expand-supply-constrain-demand-growth</link>
			<comments>https://tribune.com.pk/story/330062/gas-crisis-govt-plans-to-expand-supply-constrain-demand-growth#comments</comments>
			<pubDate>Tue, 31 Jan 12 20:00:21 +0500</pubDate>
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				<![CDATA[zafar.bhutta]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Possible CNG ban for private cars, industry to get gas on ‘as available’ basis.]]>
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				<![CDATA[Pushing ahead with LNG imports, despite opposition from end buyers.

The buyers think that the economics just does not work, but the petroleum ministry seems hell-bent on importing liquefied natural gas anyway.

Testifying before the National Assembly Petroleum and Natural Resources Committee, Petroleum Secretary Ijaz Chaudhry admitted that the power sector, the manufacturing sector and fertiliser producers had all balked at the idea of purchasing imported LNG at a cost of $18 per million British thermal units (mmbtu), the prevailing international price at which the government would be able to import LNG.

Chaudhry said that the government’s plan had been to get the LNG import terminal developers to find the end buyers of the gas, which they had apparently failed to do, largely due to pricing concerns. Even power companies – which are currently relying on highly expensive furnace oil – have turned down the idea of buying LNG at its market rate.

“Power companies have told us that they would rather shut down than have to pay $18 per mmbtu,” Chaudhry told the committee. “[This is despite the fact that] the power companies are currently buying furnace oil at a rate of about $20 per mmbtu.”

Most of the largest industrial consumers of natural gas have suggested that the government create a weighted average formula for gas pricing, with the lower local price of gas offsetting the higher international price. The petroleum ministry seems to be considering the idea.

“We are now working to put the imported LNG into the pipeline systems of [state-owned] Sui Northern Gas Pipelines and the Sui Southern Gas Company and to charge a weighted average price for the gas from manufacturers, the fertiliser sector and the power sector,” said Chaudhry during his testimony.

The petroleum secretary appeared to be confident that despite what amounted to open rebellion by the major buyers of the gas, the country would be able to begin importing LNG within the coming year.

Domestic production

But importing LNG is not the only component of the government’s plan to combat the gas crisis that has seen the gas shortage in the country jump to as high as 2,100 million cubic feet per day (mmcfd) during peak winter demand.

The petroleum ministry had submitted a draft of a new petroleum policy that would pay companies exploring and developing domestic supplies of oil and gas a rate of $6 per mmbtu, significantly higher than the current rate which can often be lower than $3 per mmbtu. Oil and gas companies have been demanding higher prices because the cost of exploration has gone up since the last policy was announced in 2001.

Chaudhry said that while the government had some disputes with the provinces over who would exercise regulatory authority over oil and gas companies, there was agreement on the new, higher price to be paid to domestic producers. The hope is that higher prices will attract more companies into exploring and producing more domestic oil and gas, which is much cheaper than any imported options.

Pipeline imports

Another option the government is aggressively pursuing is importing gas from Iran and Turkmenistan via pipelines. Both pipelines are more expensive that local production, but cheaper than LNG imports. Gas from the Iran pipeline would cost $11 per mmbtu and from the Turkmenistan pipeline about $13 per mmbtu.

The petroleum secretary also refuted the allegations that Pakistan might give in to US pressure to abandon the Iran pipeline.

“The route survey of the pipeline has been completed and companies have been shortlisted for the engineering, procurement and construction contracts,” he said, adding that the government was already in the process fof acquiring the land for the pipeline.

If completed on time, gas would begin to flow from Iran by 2014.

Possible CNG ban for private cars, industry to get gas on ‘as available’ basis

The petroleum ministry has sought political consensus from Parliament for what appears to be an aggressive gas load management plan, aimed at constraining the growth in demand for natural gas.

In his testimony before the National Assembly Petroleum and Natural Resources Committee on Tuesday, Petroleum Secretary Ijaz Chaudhry explained the government’s challenges in managing the nation’s dwindling reserves of gas and laid out a plan for rationing the available gas between the various sectors that use it.

The plan calls for raising prices on compressed natural gas (CNG) used as fuel by vehicles, switching from guaranteed supply to “as available” contracts for captive power plants in industrial units, banning the use of CNG in private vehicles and linking expansions in gas allocations to additions of supply to the gas grid.

“No sector is ready to cooperate [with the government] on the gas load management plan,” said Chaudhry.

CNG

Effective Wednesday, CNG will now be subject to a 10% infrastructure development cess. CNG prices in Khyber-Pakhtunkhwa, Balochistan and the Potohar region (Islamabad, Rawalpindi and Gujjar Khan) will now be Rs74.30 per kilogramme, while those in the rest of the country will be Rs69.62.

In addition to the tax, the government is planning on increasing the base prices of CNG. “We have an agreement with the CNG lobby to keep prices at 55% of petrol,” said Chaudhry. “We are requesting the economic coordination committee (ECC) of the cabinet to revise this formula.”

The government had also considered lowering diesel prices as a means of encouraging alternatives to CNG, but the price differential was simply too great to achieve any meaningful reduction in CNG consumption without raising CNG price. In the meantime, the government was considering simply banning the use of CNG in all vehicles except public transportation.

“A ban on CNG use in cars with engines over 1,000 cubic centimetres would be challenged in the courts as discriminatory,” said the secretary. “We are currently studying a plan to ban the use of CNG in private vehicles, which would reduce gas consumption in that sector by 50%.”

Captive power in industry

The petroleum secretary confirmed that the nine-month gas supply agreements that the state-owned gas companies had with captive power plants in large industrial units were not being honoured.

“The decision to enforce these agreements needs to be made politically,” said the secretary. “We are going to revise these agreements with industry to provide gas to them on an ‘as available’ basis.”

Managing supply growth

The petroleum secretary also said that the government should only expand allocations of gas in the same proportion as new supplies of gas to the national system. Chaudhry was met with some hostile questioning when he stated that the state-owned Sui Northern Gas Pipelines and Sui Southern Gas Company had invested Rs250 billion over the last five years in expanding the gas network under development schemes supported by parliamentarians.

“SNGP had imposed a moratorium on new connections 2009, but 90% of new connections went to the domestic consumer sector through parliamentarians,” he said. He then laid out more numbers that suggested that political interference was hampering the ministry’s ability to manage the gas load. “About 180 million cubic feet per day (mmcfd) of gas supply capacity was added to the network last year, but the gas shortfall increased by 270 mmcfd, largely due to the spread of new connections under the prime minister’s directives to provide has to development schemes backed by parliamentarians.”

He also added: “The Oil and Gas Regulatory Authority (Ogra) relaxed the ban on new CNG stations and issued 400 new licences.”

Published in The Express Tribune, February 1st, 2012.]]>
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			<title>Rationalising natural gas usage</title>
			<link>https://tribune.com.pk/story/322377/rationalising-natural-gas-usage</link>
			<comments>https://tribune.com.pk/story/322377/rationalising-natural-gas-usage#comments</comments>
			<pubDate>Mon, 16 Jan 12 16:56:27 +0500</pubDate>
			<dc:creator>
				<![CDATA[yaqoob.khan.bangash]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=322377</guid>
			<description>
				<![CDATA[We must stop the supply of gas to industries which have alternative fuel systems.]]>
			</description>
			<content:encoded>
				<![CDATA[On January 1, 2012, I woke up to no electricity, no water, and no natural gas in Lahore. While the common man in the street might no longer care about memogate, the fate of the government, or even the Taliban, he and especially she, does care about the mundane issues of gas, electricity and water provisions. The psychological effects of not having the basic things to live on are quite significant and lead to increased social strife and tensions.

Over the last decade, natural gas usage has skyrocketed in Pakistan. From a consumption of about 23.4 billion cubic metres in 2001, it increased to about 38.41 billion cubic metres in 2009. The extraction rate of our country, around 840 billion cubic metres, is so high that if we continue at this rate, our reserves will run out in twenty years. For all those people who are out on the streets protesting against the non-availability of gas for various purposes, this is the time to stop and ponder. We might not have any left very soon.

Natural gas is primarily used in households, industry and automobiles in Pakistan. When natural gas was first extracted, its primary purpose was seen as supplying the household. With electricity a scarce resource from the beginning, the government promoted gas-based stoves so as to lessen the burden on electricity consumption. Similarly, knowing that electric heaters use a lot of electricity, low cost and efficient gas-based heaters became the mainstay of Pakistani winters. The result, which was part of a pragmatic policy of making good use of a locally-available cheap resource, was that natural gas became an indispensible part of a large proportion of Pakistani households. Surplus natural gas was then provided to industry so that some industries might supplement their expensive petroleum bills with cheaper natural gas. Similarly, with the advent of compressed natural gas (CNG), people began to use this cheaper alternative to the more expensive petrol in automobiles.

However, in all this expansion of the use of natural gas, what was forgotten was that natural gas is a finite resource and our speed of consumption is fast outrunning our extraction ability. With gas being harder to import (remember the now failed Iran-Pakistan-India pipeline or the several still-born projects to get gas from Central Asia?), it was only a matter of time before our consumption needs far outstripped our extraction.

Over the last couple of years, the scarcity of gas has become so acute that there are outages for over half a day in industrial and household units. In addition, CNG stations in most of the country have to take a couple of day’s holiday so as to ration the fuel.

Therefore, we must take further strong immediate measures to rationalise natural gas usage in the country. First, we must stop the supply of gas to industries which have alternative fuel systems. For example, all over the world, the cement industry uses cheap coal for production and it is only in Pakistan that even during acute shortages, the cement industry is supplied such a luxury.

If the cement industry in India can run on coal, without a hint of natural gas, we can have that too. Secondly, we must stop the fitting in of CNG kits in new automobiles. CNG might be cheaper, but with petrol available (and easily importable), we cannot use this scarce resource in this way any longer. It might be better for people to think how they can economise their petrol usage so as to bring down costs. Thirdly, we must prioritise gas provision to households over all other uses. With electricity already scarce we do not have an alternative to gas-based stoves in Pakistan at the moment. Unless we want to burn wood again, which is also not sustainable, we have to give priority to uninterrupted supply of gas to households, over and above both industry and automobiles, both of which have easily supplied alternatives. Yes, this might mean the closing of CNG stations in Pakistan, but so be it.

Published in The Express Tribune, January 17th, 2012.]]>
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			<title>Advising the govt: APTMA members to meet on Friday</title>
			<link>https://tribune.com.pk/story/320441/advising-the-govt-aptma-members-to-meet-on-friday</link>
			<comments>https://tribune.com.pk/story/320441/advising-the-govt-aptma-members-to-meet-on-friday#comments</comments>
			<pubDate>Thu, 12 Jan 12 14:31:37 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=320441</guid>
			<description>
				<![CDATA[Textile industry representatives are set to make suggestions to the government on the way forward on energy security.]]>
			</description>
			<content:encoded>
				<![CDATA[Textile industry representatives are set to make suggestions to the government on the way forward on energy security, a press statement from the All Pakistan Textile Mills Association said on Thursday.

The recommendations will be decided in a meeting at APTMA’s Punjab office on Friday, which will be chaired by the association’s prominent member Gohar Ejaz.

Prime Minister Yousaf Raza Gilani had asked Ejaz on Saturday to consult industry stakeholders and advise the federal cabinet on how the government can overcome the energy crisis. He had asked for recommendations within six days.

Accordingly, a special task force on energy, headed by Ejaz, was set up which included representatives from the chemical, fertiliser and power sectors. The group, which will meet for the first time on Friday, was tasked to devise a roadmap to address the energy shortage being faced by the industrial sector of Pakistan.

“The industry and the government have come together to chalk out a joint strategy on gas supply to industries that rely on the Sui Northern Gas Pipeline Limited Network,” Ejaz said. “The task force will advise the government on managing uninterrupted gas supply of 600MMCFD, 240MMCFD and 150MMCFD to general industry and textile, fertiliser and power sectors respectively throughout the year within six months.”

The task force will also make recommendation on overcoming the gas shortage of up to 1,000MMCFD during winter and 500MMCFD during summer on the SNGPL network to keep the industry running throughout the year. Representatives from industrial stakeholders will finalise recommendations on uninterrupted gas supply to the industry, fertiliser and power sectors.

The textile industry has suffered gas suspension for 180 days from January 2011 to date. Consequently, textile exporters have lost about $2 billion in the first six months of the current fiscal year.]]>
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			<title>Gas supply from Kunnar-Pasakhi delayed despite petroleum minister assurances</title>
			<link>https://tribune.com.pk/story/320148/gas-supply-from-kunnar-pasakhi-delayed-despite-petroleum-minister-assurances</link>
			<comments>https://tribune.com.pk/story/320148/gas-supply-from-kunnar-pasakhi-delayed-despite-petroleum-minister-assurances#comments</comments>
			<pubDate>Wed, 11 Jan 12 21:47:07 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=320148</guid>
			<description>
				<![CDATA[APTMA says industries not on SNGPL’s priority list.]]>
			</description>
			<content:encoded>
				<![CDATA[Despite assurances from the petroleum minister, the Sui Northern Gas Pipelines Limited (SNGPL) has been unable to re-start gas supply to industries, which was scheduled to resume from Wednesday, citing delay in supply from the Kunnar-Pasakhi gas field.

The SNGPL network was expected to receive 50 million cubic feet per day (mmcfd) of gas from the Kunnar-Pasakhi field on Wednesday, but it was delayed. The company has informed the industries about the delay and asked them to wait until fresh volume is added to the system.

Last week, Petroleum Minister Asim Hussain assured the protesting industrialists that they would be provided gas for two days a week.

“The 50 mmcfd of gas could not be added to the system due to some technical reasons, but it will be received soon. New gas fields often encounter such technical issues,” said SNGPL General Manager Sales Rehan Nawaz while talking to The Express Tribune.

However, he cautioned that even after the gas was received from the new field, it would be difficult to ensure supply to industries in January as demand from residential consumers had increased by 150 mmcfd in the past one week mainly due to snowfall in northern areas.

“SNGPL is currently facing a demand-supply gap of around 850 mmcfd, making it difficult for us to supply without any interruption to residential consumers, who are our priority,” Nawaz said. “The company is also continuously supplying 100 mmcfd to national defence institutions.”

He pointed out that when textile millers met with the minister last week, the situation was different, but “now snowfall has increased the load.”

The company does not have enough gas for industries and is working to make more zones in consultation with all stakeholders to manage gas load in an efficient manner. “This process will be completed soon,” he said.

Reacting to the development, All Pakistan Textile Mills Association (Aptma) Punjab Chapter President Ahsan Bashir alleged SNGPL was not interested in providing gas for industries in January as the sector was never a priority for it, “We think this is just a lame excuse, which will continue until the weather improves,” he said.

“We also tried to contact the Punjab governor and the petroleum minister, but to no avail. They told us to run our units on alternative means despite the fact that all industrial expansion in previous years was done on the basis of gas supply as Wapda could not supply electricity to industries,” Bashir added.

He said the industries had to meet export orders and would hold a meeting shortly to chart a future course of action.

Published in The Express Tribune, January 12th, 2012.]]>
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			<title>Gas shortage: Four days on, Balochistan loses its patience</title>
			<link>https://tribune.com.pk/story/318863/gas-shortage-four-days-on-balochistan-loses-its-patience</link>
			<comments>https://tribune.com.pk/story/318863/gas-shortage-four-days-on-balochistan-loses-its-patience#comments</comments>
			<pubDate>Mon, 09 Jan 12 14:48:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shezad Baloch]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318863</guid>
			<description>
				<![CDATA[Traders, residents stage protests across the city, blocking roads and burning tyres; demand restoration within 3 days.]]>
			</description>
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				<![CDATA[As Balochistan went without gas for the fourth day on Monday, agitated Quetta residents took to the streets and blocked roads in protest. 

Protesters marched throughout the city, including main areas such as Saryab Raod, Alamo Chowk, Killi Shabo and Smungali Road, and condemn the inefficiency of the Sui Southern Gas Company which has been unable to repair an 18-inch pipeline in Dera Bugti that was attacked twice last week.

Enraged protesters in Saryab, the most populous part of the city, stopped a passenger train enroute to Karachi from Quetta for an hour and staged a sit-in on the railway track. Noisy protesters also staged a demonstration outside SSGC’s regional office in Quetta.

Many protesters were of the view that the SSGC takes hours to repair an attacked gas pipeline that supplies Punjab and northern Pakistan.

Zubair Ahmed, a young Quetta resident, paused only long enough from chanting anti-SSGC slogans to allege the company’s management of deliberately delaying resumption of gas supply. “This is the third winter that we are deprived of gas, particularly in the month of January,” he said. “Temperatures in Quetta and adjacent areas have dropped beyond freezing point and gas is an essential need.”

The SSGC spokesperson, however, claimed that gas supply to Quetta and other townships was restored on Sunday night. When it was pointed out to him that there was no gas on Monday, he said that the repairs were complete but it may take a few hours to completely restore supply.

Traders from the Anujman-i-Tajiran Balochistan held a protest demonstration outside the Quetta Press Club. They warned that they will intensify their protest and block the National Highway as well as observe a shutter-down strike in Quetta if gas supply was not restored within three days.

In areas where gas was being supplied, the pressure was too low for use. “I haven’t eaten properly cooked food in five days. We are using firewood to cook,” said Adeel, a resident of the Railway Colony.

Protest demonstrations were also organised in Mach Town and Pishin, Kalat and Mastung districts.]]>
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			<title>Misguided policies: The farce of the CNG shortage, myth or reality</title>
			<link>https://tribune.com.pk/story/318506/misguided-policies-the-farce-of-the-cng-shortage-myth-or-reality</link>
			<comments>https://tribune.com.pk/story/318506/misguided-policies-the-farce-of-the-cng-shortage-myth-or-reality#comments</comments>
			<pubDate>Sun, 08 Jan 12 21:12:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[imran.zawwar]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318506</guid>
			<description>
				<![CDATA[Government overly focused on protecting public sector companies.]]>
			</description>
			<content:encoded>
				<![CDATA[The prices of CNG in Pakistan have been continuously on the rise and various associations in the country accuse the price hike as being associated with incompetence and corruption of the government. In its latest price increase, the government has raised the price of CNG to Rs74.30 per kilogramme.

The price increase seems designed simply to safeguard the interest of the public sector gas companies. This is poor public policy. It creates inefficiencies and worsens inequalities. Instead of trying to control the gas market, government should promote competition and that also means privatisation.

Sources in the government say that one reason for this massive increase is made to save two major gas utilities Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) from default. It is ironic to note that these utilities are suffering from abnormally high UFG (Unaccounted for Gas) losses of over 10 per cent.

According to a report Pakistan’s Natural Gas reserves are estimated to be 885.3 billion cu m (as of Jan 1 2009) which are enough to last for about 20 years even if there is no further exploration. In order to save foreign exchange Pakistan restricted its petrol imports and shifted the complete industry structure to the usage of gas as a primary fuel because gasoline prices are the highest in the region. At present there are around 2,941 CNG refuelling stations in the country and an approximate of 2.19 million vehicles that use CNG as the primary fuel.

Pakistan is one of those countries where control on carbon emissions has proven to be extremely difficult because government regulations are not well defined. In such a scenario the use of CNG in vehicles is a positive shift because it is much less polluting than regular gasoline (petrol). The emissions from CNG vehicles consist of water vapours and carbon monoxide (CO) and the CO content is also 90% less than CO found in gasoline (petrol) exhausts.

Apart, from the massive spill over effects that will further weaken the economy, the government has failed to realise that such actions cause deviation from the equilibrium which results in economic inefficiencies and increase of deadweight losses. When prices are controlled artificially this destroys the market equilibrium and reduces the economic surplus.

Another important aspect is exacerbation of inequalities - those who consume less gas because of the price rise will be those unwilling or unable to pay and, given the inelasticity of demand, that will mean the poorest will be most affected by the government’s aim of rescuing the companies. As the demand for gas is inelastic, consumers will absorb the price, producers’ revenues will rise and it will constitute a significant reduction in real incomes, with implications for spending on other goods.

The solution to the problem is not in raising the prices. We are operating under the conditions of an imperfectly competitive supply which in itself is a case of market failure associated with loss of economic efficiency. The imperfect competition is a situation where firms are not forced to reduce price to the point where there are no supernormal profits, therefore, prices are too high and the amount produced too little to be socially optimal. The solution to this problem as well as other problems including shortage of electricity and water is in promoting competition and privatisation. The role of government is not to establish a committee to revise prices after every fifteen days rather it is to establish protocols which improve public service and efficiency.

The writer is a policy analyst from Carnegie Mellon University

Published in The Express Tribune, January 9th, 2012.]]>
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			<title>5 suffocate to death in Balochistan</title>
			<link>https://tribune.com.pk/story/318434/5-suffocate-to-death-in-balochistan</link>
			<comments>https://tribune.com.pk/story/318434/5-suffocate-to-death-in-balochistan#comments</comments>
			<pubDate>Sun, 08 Jan 12 14:06:45 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shezad Baloch]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318434</guid>
			<description>
				<![CDATA[Sudden gas supply cut at night causes poisonous gas to accumulate in rooms, killing people in their asleep.]]>
			</description>
			<content:encoded>
				<![CDATA[Five people, including three children, have died in separate incidents of suffocation as temperatures and gas pressure plummeted in Balochistan. 

Salman and his wife Gul Bibi turned on the heater on Saturday night in Quetta’s Hazara Town but forgot to switch it off before going to sleep. Poisonous gas filled the room and the couple died of suffocation.

Police shifted their bodies to a state-run hospital where they were handed over to their heirs.

Meanwhile, Bibi Shakira, 13, Hikmatullah, 10, and Zulqaida, 8, were found dead in Kuchlak, on the outskirts of Quetta. They had also forgotten to turn off the heater before going to be. Their bodies were taken to Provincial Sandeman Hospital for medico-legal formalities. Their father Naimatullah was present and received the bodies for burial.]]>
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			<title>Two days of gas: Industries end protest</title>
			<link>https://tribune.com.pk/story/318196/two-days-of-gas-industries-end-protest</link>
			<comments>https://tribune.com.pk/story/318196/two-days-of-gas-industries-end-protest#comments</comments>
			<pubDate>Sun, 08 Jan 12 06:35:34 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318196</guid>
			<description>
				<![CDATA[Four-hour dharna ends after governor repeats offer made by federal govt on Friday.]]>
			</description>
			<content:encoded>
				<![CDATA[Thousands of industrial labourers and trade leaders held a four-hour protest here on Saturday before accepting a government offer for gas supply to industries of two days a week.


The protesters included representatives of all 17 chambers of commerce and industry in Punjab, the Anjuman-i-Tajiran Paksitan, the Qaumi Tahjir Ittehad Pakistan and sector-specific associations. They began gathering by the truck-load at the Lahore Chamber of Commerce and Industry at 1pm and later marched towards Governor’s House.

They carried banners and placards and shouted slogans demanding that Punjab’s industries get a greater share of the country’s natural gas resources. ‘We reject discrimination against Punjab in supply of gas,’ ‘We reject fast increasing unemployment,’ and ‘Save our jobs, save our children’, they chanted. They also blocked the road with burning tyres. Trade leaders made speeches critical of both the federal and the Punjab government.

The protests ended after Governor Sardar Latif Khosa pledged that factories in the province will get gas two days a week. Federal Minister for Petroleum and Natural Resources Dr Asim Hussain had offered them the same deal on Friday – restoration of 300 million million cubic feet of supply for two days a week – after talks with industrial and Sui Northern Gas Pipeline representatives. However, the industrial reps had refused to cancel their protest, saying they did not think the minister’s offer reliable.

Addressing the protestors during Saturday’s ‘dharna’, Lahore Chamber of Commerce and Industry President Irfan Qaiser Sheikh said that protests would continue till the restoration of full gas supply. He urged the government to stop issuing new gas connections, implement a fair and equitable schedule of gas supply outages across the country, and waive the interest on unpaid gas bills for the period when industries were not getting gas.

He said the government needed to reconsider its priorities when it came to gas consumers, as suspending the supply to industries had meant thousands of daily wagers losing their ‘jobs’. The suspension had also led to the closure or partial closure of some factories.

“The economy appears to be this government’s lowest priority,” said Sheikh. “Their lack of seriousness is giving birth to a number of social problems and if the situation remains the same it could also create law and order problems in the province.”

Pakistan Industrial and Trade Associations Front (PIAF) Chairman Sohail Lashari said that gas was available in Pakistan and an artificial shortage had been created, “perhaps like the electricity problem was created so they could make huge investments in IPPs [independent power producers]”. He said that the protestors should not negotiate with anyone except the prime minister or the president. He said traders and industrialists were being “economically murdered”.

Ashraf Bhatti of Anjuman-i-Tajiran Lahore said traders would hold a shutter-down strike to express solidarity with the industries. He said that such strikes would also be held in the other provinces.

Faisalabad Chamber of Commerce and Industry President Muzammil Sultan said that the Punjab was being treated like an “untouchable”.

Sialkot Chamber President Naeem Anwar Qureshi said that the government had forced the industries to come onto the streets. He said cities like Sialkot that generated a lot of revenue should get more gas.

Gujranwala Chamber President Malik Zaheer said that the government’s incompetence had led to an 18 per cent devaluation of the rupee. He said that more than $4 billion (Rs362 billion) worth of electricity and gas was stolen each year in Pakistan. Gujranwala, he said, accounted for Rs10 million of these losses.

Published in The Express Tribune, January 8th, 2012.]]>
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			<title>‘Gas crisis will be brought under control in six months’</title>
			<link>https://tribune.com.pk/story/318266/%e2%80%98gas-crisis-will-be-brought-under-control-in-six-months%e2%80%99</link>
			<comments>https://tribune.com.pk/story/318266/%e2%80%98gas-crisis-will-be-brought-under-control-in-six-months%e2%80%99#comments</comments>
			<pubDate>Sat, 07 Jan 12 22:36:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318266</guid>
			<description>
				<![CDATA[Shortfall increased due to high demand in winter: Asim Hussain.]]>
			</description>
			<content:encoded>
				<![CDATA[Federal Minister for Petroleum Dr Asim Hussain said on Saturday that the gas crisis would not end anytime soon but it would be brought under control in the next six months.


“We want to significantly reduce the present demand and supply gap in the next six months. Before the next general elections, I want to make a roadmap for the resolution of the energy crisis and hand it to the next government for implementation,” he said.

The petroleum ministry was speaking at the share distribution ceremony under Benazir Employees Stock Option Scheme among Sui Southern Gas Company employees at Regent Plaza on Saturday.

Out of the total 12,000 employees, some 6,500 regular employees now own 12% shares of SSGC. Under the Benazir Employees Stock Option Scheme, employees of government-owned enterprises are being transferred 12% share of their organisation.

The employees cannot sell or transfer these shares during their job tenure, but get the annual dividends and have the option the sell the shares at the time of retirement.

Pakistan is facing 1.8 billion cubic feet (bcf) gas shortfall because of high demand in winter season. The demand is exceeding supply by over 6 bcf, Hussain said.

He said the situation would improve in February following decrease a gradual rise in temperature.

“The biggest challenge for us is the losses and gas theft. The government has decided to reduce unaccounted for gas (UFG), a technical term for gas theft and losses, by at least 2% from the present 10.3% before June this year,” he said.

SSGC is implementing a natural gas efficiency project with the assistance of World Bank which has extended $200 million for bringing down losses.

There is a gas crisis in the country but it is not a dooms day scenario, he said, adding that Pakistan has 75 trillion cubic feet reserves of gas which can be exploited to meet the growing demand of gas.

Hussain also directed the management of SSGC to further regularise senior employees of SSGC after taking their tests in the coming week.

Senator Faisal Raza Abidi speaking at the ceremony said that the government has regularised 47,000 employees in state-owned institutions in the last four years and this figure could touch 100,000 as more regularisation is on the cards.

Published in The Express Tribune, January 8th, 2012.]]>
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			<title>Gas crisis: ‘The government had a plan in 2005 but did nothing’</title>
			<link>https://tribune.com.pk/story/318269/gas-crisis-%e2%80%98the-government-had-a-plan-in-2005-but-did-nothing%e2%80%99</link>
			<comments>https://tribune.com.pk/story/318269/gas-crisis-%e2%80%98the-government-had-a-plan-in-2005-but-did-nothing%e2%80%99#comments</comments>
			<pubDate>Sat, 07 Jan 12 22:25:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=318269</guid>
			<description>
				<![CDATA[State-owned companies have continued to add to the gas grid despite no substantial addition to supply.]]>
			</description>
			<content:encoded>
				<![CDATA[The government had a gas allocation plan as early as 2005 but did not bother to implement it, resulting in the current crisis in the energy sector, according to sources familiar with the matter.


“The government had created a gas allocation and load management policy in 2005 in anticipation of the shortage, but did not implement it, leading to the current crisis,” said one energy expert who wished to remain anonymous.

Yet even now, despite the massive shortage of gas faced by the country, the two state-owned gas companies have continued to build new pipelines, spending Rs123 billion over the last six years to add approximately 2 million more consumers to the gas grid.

These figures were revealed during an analytical briefing to the cabinet given by the petroleum ministry, a copy of which was made available to The Express Tribune. The numbers in that presentation seem to suggest that, despite not having an adequate plan to increase the supply, the government has done nothing to try to curb the growth of demand, leading to an exacerbation of the problem.

Between July 2005 and June 2011, Sui Northern Gas Pipelines laid approximately 35,000 kilometres of pipelines, at an expense of about Rs80 billion, to provide gas to 1.45 million new consumers. Sui Southern Gas Company, meanwhile, over the same period spent Rs43 billion in laying 14,000 kilometres of pipelines to connect about 600,000 new consumers of gas.

These projects added an average of about 1,390 million cubic feet per day (mmcfd) of demand to the gas system in the country. About 830 mmcfd came from the additions to the SNGP network while about 567 mmcfd came from the expansion of the SSGC network between 2005 and 2011.

During this same time, the total supply in the country increased by a paltry 172 mmcfd. While about 533 mmcfd was added to the system as a result of new discoveries and another 225 mmcfd added due to increased production from existing fields, about 586 mmcfd was lost as a result of gas fields going offline due to depletion.

“It is pathetic that the gas companies are expanding their network without keeping in view the gas reserves depletion,” said one official at the Oil and Gas Regulatory Authority, on the condition of anonymity, adding that the strain on the system would likely cause natural gas prices to keep rising.

Yet energy pricing is precisely the one area where most experts agree the government does need to allow rises in prices.

As of today, most domestic consumers pay between $1.35 and $2.70 per million British thermal units (mmbtu). Fertiliser manufacturers pay between $0.75 per mmbtu to $1.20 per mmbtu. International gas prices, meanwhile, are at around $4 per mmbtu or higher.

Indeed, liquefied natural gas (LNG), which is being touted as a solution to the natural gas crisis is selling at $18 per mmbtu. The prices of LNG have jumped sharply by about 38% after the earthquake in Japan in 2011, which caused several nuclear power plants to shut down, causing an enormous shortage of energy, which Japan has been filling through an increase in the production of thermal power plants that run on imported LNG.

Pakistan’s current reserves are producing about 4,170 mmcfd, but that number is expected to decline to about 2,260 mmcfd by 2021. Meanwhile, demand is currently estimated at 5,395 mmcfd – about 29% higher than current supplies – and is projected to rise beyond 8,000 mmcfd by 2021.

Yet SSGC and SNGP do not seem to have any intention of slowing down their expansion of the gas network. Both companies are working on about 2,900 new projects that are expected to cost about Rs30 billion and add an additional 709 mmcfd of demand to an already strained system. SSGC has completed about 70% of the work on the projects in its area, while SNGP has completed about 46% of the projects that fall under its jurisdiction.

Published in The Express Tribune, January 8th, 2012.]]>
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			<title>Rally against inflation and gas, power shortage</title>
			<link>https://tribune.com.pk/story/317225/rally-against-inflation-and-gas-power-shortage</link>
			<comments>https://tribune.com.pk/story/317225/rally-against-inflation-and-gas-power-shortage#comments</comments>
			<pubDate>Fri, 06 Jan 12 03:18:39 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=317225</guid>
			<description>
				<![CDATA[Perturbed by rising inflation and power outages, citizens take to the streets.]]>
			</description>
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				<![CDATA[Hundreds of working class people, including women and children, staged a rally against inflation, loadshedding of electricity and gas and privatisation policy in Rawalpindi on Thursday. The rally, organised by Labour Party Pakistan (LPP), started from Committee Chowk and marched up to Liaquat Bagh, chanting slogans against the government, said a press release issued by the LPP.


The participants were holding placards and banners inscribed with slogans like “no to price hike”, “withdraw increase in prices of electricity and gas”, “stop privatisation”, and “No to IMF and World Bank conditionalities”.

Speaking at the rally, LPP general secretary Advocate Nisar Shah said that Pakistan is facing the worst energy crisis, for which the ruling elites are responsible.

Shah said Pakistan is under $60 billion foreign debt, which is one of the main factors contributing to poverty as it takes a major portion of the national budget.

Shah also criticised the government’s strategy of engaging rental power plants, instead of focusing on small-scale dams.

Talat Rubab, Home Based Women Workers coordinator, said that the government policies are badly affecting the lives of working people.

“There is no gas at home, and wood is very expensive to burn. Most of the time of the women is spent in preparing food and they have no time for the home-based work; life is becoming hell for women workers,” Rubab said.

Published in The Express Tribune, January 6th, 2012. ]]>
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			<title>Gas shortage: Punjab businessmen all set for Jan 7 protest</title>
			<link>https://tribune.com.pk/story/317014/gas-shortage-punjab-businessmen-all-set-for-jan-7-protest</link>
			<comments>https://tribune.com.pk/story/317014/gas-shortage-punjab-businessmen-all-set-for-jan-7-protest#comments</comments>
			<pubDate>Thu, 05 Jan 12 16:28:02 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Punjab]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=317014</guid>
			<description>
				<![CDATA[The LCCI president says that businessmen would continue to struggle until their demands are met.]]>
			</description>
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				<![CDATA[Chambers of commerce in Punjab finalised arrangements on Thursday for their scheduled sit-in on January 7 against the prevailing gas shortage in the province.

The protest was sparked by, what they called, the federal government’s discrimination against the province in natural gas supply.

According to the protest plan earlier announced on January 2 by Lahore Chamber of Commerce and Industry (LCCI) president Irfan Qaiser Sheikh, around 50,000 to 100,000 industrialists, traders and industrial workers would be participating in the sit-in.

Sheikh had said that presidents of all the Chambers of Commerce &amp; Industry in Punjab and their Executive Committee Members were going to take part in the protest, adding that it was the government’s discrimination against the industries in Punjab that had forced the business community to take this extreme step.

He added that if the government remained unmoved after the sit-in, a call for a protest in Islamabad would also be given. Sheikh reiterated that the entire industry was in deep trouble and thousands of workers were going to lose their jobs.

The defiant LCCI president said that businessmen would not be intimidated by FIRs registered against and that they would continue their struggle until their genuine demands were accepted in the larger interest of the economy and the country.

Earlier on Monday a case has been registered against Sheikh and other representatives of traders on charges of creating public nuisance after they blocked a road.

An FIR was lodged at the Race Course police station under section of 290, 291 and 188 of the Pakistan Penal Code, (Continued Public nuisance and disobedience). The case was registered on the application of Habib Khan, a sub inspector in Race Course police station.

(Read: Gas supply suspension: LCCI protest earns them an FIR)]]>
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			<title>Homes, CNG stations to get gas at industries’ expense</title>
			<link>https://tribune.com.pk/story/316872/politics-trumps-economics-homes-cng-stations-to-get-gas-at-industries%e2%80%99-expense</link>
			<comments>https://tribune.com.pk/story/316872/politics-trumps-economics-homes-cng-stations-to-get-gas-at-industries%e2%80%99-expense#comments</comments>
			<pubDate>Thu, 05 Jan 12 00:26:19 +0500</pubDate>
			<dc:creator>
				<![CDATA[zia.khan]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=316872</guid>
			<description>
				<![CDATA[Cabine­t grants additi­onal subsid­y to power sector, calls for declar­ing bureau­crats’ assets.]]>
			</description>
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				<![CDATA[As public anger on the streets continues to mount, the federal cabinet on Wednesday decided to suspend gas to the industrial, fertiliser, power and cement sectors in the month of January, to ensure smooth supply to domestic consumers and the CNG sector.


The decision was taken at a cabinet meeting chaired by Prime Minister Yousaf Raza Gilani, despite opposition from the industries and textile ministries.

Opponents of the decision argued that the government must not compromise economic considerations over political ones, but found little support, officials at the meeting told The Express Tribune.

The suspension to key economic sectors comes as thousands of people rally against low gas pressure at homes and chronic supply suspension to fuel stations in all major cities.

The premier spoke decisively after an hour of arguments: “We have to strike a balance because our resources are limited … and we can’t leave our people without gas in winter.”

He directed that full gas pressure should be ensured for domestic consumers in January and the agreement reached with the CNG sector be implemented, Information Minister Firdous Ashiq Awan told the media.

The prime minister was also requested to inaugurate the Kunar Pasaki gas field near Hyderabad, which will add 100 million cubic feet (of gas) per day to the system, in the next few days.

Providing details of provincial gas production and consumption, Awan said Sindh produces 69% of the country’s total gas and consumes 41%, Balochistan produces 17% and consumes 7%, Khyber-Pakhtunkhwa produces 9% and consumes 7% while Punjab produces 5% and consumes 45%.

The cabinet has formed a committee to hold talks with Sindh’s industrial sector to supply some gas to Punjab’s industry from its share during the current month, Awan added.

Power subsidy 

The cabinet also decided to immediately release Rs15 billion to the water and power ministry to overcome the growing electricity shortage. Awan said the decision was part of efforts to increase power generation by at least 1,200 MW.

The cabinet directed the energy committee to review the load management plan every two days and take steps accordingly, she said, adding that the prime minister called for discouraging unscheduled load shedding.

The new subsidy will be in addition to Rs10 billion already granted to the power sector.

Bureaucrats’ assets  

The cabinet also directed the ministry of law and parliamentary affairs to vet a draft private bill aimed at making it binding on all civil and military bureaucrats to publicly declare their assets every year, as parliamentarians do.

“Every one who receives a salary from the government, whether from judiciary, armed forces or any other department, will be bound to declare his assets and make them public,” Awan said.

The cabinet made this decision while discussing the civil servants’ private member bill moved by Dr Donya Aziz and seven other parliamentarians, she added.

The minister said that every civil servant submits details of assets yearly but that information would now be made public.

(Read: The gas fix)

Published in The Express Tribune, January 5th, 2012.]]>
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			<title>Court case: Petroleum minister on notice for price hike</title>
			<link>https://tribune.com.pk/story/316752/court-case-petroleum-minister-on-notice-for-price-hike</link>
			<comments>https://tribune.com.pk/story/316752/court-case-petroleum-minister-on-notice-for-price-hike#comments</comments>
			<pubDate>Wed, 04 Jan 12 22:23:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=316752</guid>
			<description>
				<![CDATA[Rana Faizul Hasan of the NGO United Human Rights Commission Pakistan (UHRCP) filed the petition.]]>
			</description>
			<content:encoded>
				<![CDATA[The federal minister for petroleum and the heads of the Oil and Gas Regulatory Authority (OGRA) and Sui Southern Gas Company (SSGC) are among the officials who have been served notices for January 24 in a petition challenging the recent increase in the price of natural gas.


Rana Faizul Hasan of the NGO United Human Rights Commission Pakistan (UHRCP) filed the petition, which named the secretary for law, justice and parliamentary affairs, federal communication minister through secretary communication, federal minister for petroleum, OGRA chairperson, Sindh chief secretary and the Sui Southern Gas Company managing director as respondents.

The bench asked about the urgency of the issue since the court is currently on winter vacation. Hasan said that the entire country has been affected by the gas outage and that the increase in price would impact millions of consumers. He also referred to a statement by the petroleum minister, who had alleged that CNG station owners are earning a profit of Rs28 per kilogramme of CNG.

The petitioner maintained that the increase is against the greater public interest.

The bench ordered its office to issue notices to all the respondents and the deputy attorney general Pakistan for January 24.

Published in The Express Tribune, January 5th, 2012.]]>
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			<title>The gas fix</title>
			<link>https://tribune.com.pk/story/316514/the-gas-fix</link>
			<comments>https://tribune.com.pk/story/316514/the-gas-fix#comments</comments>
			<pubDate>Wed, 04 Jan 12 18:04:19 +0500</pubDate>
			<dc:creator>
				<![CDATA[khurram.husain]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=316514</guid>
			<description>
				<![CDATA[Low gas pricing has made us accustomed to view gas as cheap, abundant fuel, while it’s a precious, scarce resource.]]>
			</description>
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				<![CDATA[It’s never pretty watching an addict in the throes of withdrawal. But it’s something else to watch an entire society go through intense withdrawal together.

For about 15 years now, Pakistan has been addicted to natural gas. I don’t invoke the metaphor of addiction lightly — it is in fact the single best metaphor to describe the manner in which we have consumed this most precious natural endowment of ours.

Over the past 15 years, our consumption of what is called ‘primary energy’ has increased by 80 per cent, an increase sharper than the previous two decades combined. Primary energy basically refers to raw fuel, before it has been processed or transformed into electricity or fertilizer or any other finished form of energy.

The single largest source of our primary energy is indigenous natural gas, accounting for a little less than half of our total primary energy consumption. And over the past 15 years, we have been extracting and consuming our endowment of natural gas at an alarming rate.

Fuelling this spike in consumption is the way we price our gas. The Petroleum Institute of Pakistan, in its latest annual report says that “a low gas price has become a significant disincentive in attracting new gas supplies, either through increased domestic exploration activities or via imports of liquefied natural gas (LNG) or regional gas pipeline imports”.

The meaning is simple: nobody wants to invest in exploration or imports if the price at which the gas is sold is far below the world market price. The only other way to encourage someone to make the investment, therefore, is for the government to offer a ‘subsidy’ on the final price, offering to pay the difference from government funds. But nobody has faith that our government will be able to meet these obligations, especially since the circular debt is a living example of non-payment before us all.

The net result of this low price is that we’ve become accustomed to seeing gas as a cheap and abundant fuel, whereas in reality it’s a precious and scarce resource.

Another result of this artificially low price is the unseemly manner in which we have been relying on cheap gas to fill the gaps where our economy has failed to deliver. If gas was perceived as a precious resource, we would have been more judicious in how we utilised it. It was a smart move to use gas to produce fertilizer to fuel our agriculture. It was a remarkably stupid decision to use it as a vehicular fuel, expecting cheap gas to compensate for our failure to arrange urban mass transit. It was equally stupid to encourage industry to move into captive power generation using cheap gas as a way to make up for our failure to arrange power generation capacity for the growth rates of mid-decade. Need I mention that both of these stupidities were gifts of the Musharraf regime?

If the present state of affairs continues, our production of natural gas will decline sharply over the next decade. Again, the Petroleum Institute estimates that our production of natural gas will be a quarter of what it is today in about 15 years if we don’t act quickly to arrange alternate supplies.

For perspective, consider this: our shortfall in gas supply today is about one billion units per day. Look around you and see what this means in reality. In about 15 years this shortfall will hit eight billion units a day. Now imagine where that puts you. And please consider that 15 years will fly by very quickly indeed, especially if present levels of excitement keep up.

The agitations in the streets, the strikes, the bitter wrangling between the industrial sectors — fertilizer versus textiles versus vehicular — all speak of a terrible addiction that we have developed to cheap natural gas piped directly to the point of consumption. The agitated and paralysed state of affairs that grows out of all this is a microcosm of what happens inside the body of the addict as it yearns for its next fix.

All paths out of this state of affairs begin with a hike in the price of natural gas. There is no alternative. This bears repeating over and over again and the government must find a way to get this message across to the society, just like an addict has to realise that the time has come to kick the habit or let it kill you. Otherwise a terrible and inevitable sequence of events gets underway.

If we fail to embark on pricing reform of natural gas, we will fail to arrange additional supplies. If we fail to arrange additional supplies, we will be left chasing mirages and myths such as the Iran Pakistan pipeline, or Thar coal, the massive hydel projects dreamed up by Wapda, or offshore gas or mythical reserves that are believed to be lying undiscovered in Balochistan or Kohat or wherever.

All those are viable ideas, for sure, but they either have such huge financial requirements as to require outside support, or they require so much more exploratory work before they can be considered viable alternatives, that it will be over a decade before we can even start working on them. They are very long-term projects at best.

The question is what to do in the meantime. The only medium-term alternative that is at all viable is imports of Liquiefied Natural Gas (LNG). This gas can start to flow 18 months from financial close. In the meantime, infrastructure already exists to import LPG, which can be easily adapted to handle LNG instead.

But here it is hard to figure out what the government is really doing. Contrary to popular perception, the Supreme Court never killed the original LNG deal involving Mashal — the law ministry did. That project could have been up and running by now, bringing the shortfall under control.

It’s not fair to blame this government entirely for the gas shortfalls. This is a situation more than a decade in the making. But we are entitled to wonder why no credible and strenuous efforts have been made by the government to mitigate the crisis thus far.

Published in The Express Tribune, January 5th, 2012.]]>
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			<title>APTMA suspends protests after Zardari sends Khosa with assurances</title>
			<link>https://tribune.com.pk/story/316499/aptma-suspends-protests-after-zardari-sends-khosa-with-assurances</link>
			<comments>https://tribune.com.pk/story/316499/aptma-suspends-protests-after-zardari-sends-khosa-with-assurances#comments</comments>
			<pubDate>Wed, 04 Jan 12 16:15:09 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=316499</guid>
			<description>
				<![CDATA[APTMA leadership is meeting with Punjab Governor Sardar Latif Khan Khosa at Governor House.]]>
			</description>
			<content:encoded>
				<![CDATA[It took assurances from President Asif Ali Zardari, by way of his Punjab Governor, Sardar Latif Khan Khosa, to get members of the All Pakistan Textile Mill Association (APTMA) to suspend their protests which had seen Multan Road being blocked for a couple of hours on Wednesday.

“I came here upon President’s order for formal talks with you,” Khosa told members of the APTMA and mill owners. “Let the (Petroleum) Minister arrive in Lahore then we will collectively find a way out of this crises, I assure you that your demands will be met,” the Governor said, asking for two days worth of time since the Federal minister was occupied with  his son’s wedding.

Following these assurances, the APTMA leadership decided to temporarily break from their protests and sit-in over suspension of gas supply, and reconcile at Governor House with Khosa. Before going for the meeting, APTMA said that if their demands were not fulfilled, the protests will resume.

Earlier in the day, APTMA members commenced their protests, blocking the Multan road at Manga bypass. Thousands of mill workers along with APTMA leadership chanted slogans against Sui Northern Gas Pipelines Limited (SNGPL) over gas curtailment. The protest caused traffic to be held up on the highway for a few hours. The protestors then moved towards the SNGPL head office where they staged a sit-in.

After failing to negotiate with the protesters, SNGPL management called in the police to avoid any untoward situation. The APTMA leadership though refused to talk with SNGPL officials, justifying themselves by claiming SNGPL was responsible for the gas mismanagement. They ensured that their protests and sit-in were peaceful.

Textile millers had already announced their intention to stage a series of protests against SNGPL couple of days back after SNGPL refused to provide gas to textile industry for the month of January despite 20 days gas curtailment in December.

APTMA leadership said that the gas situation was the same as of last year, but this year SNGPL had refused to accommodate the industry. With the gas curtailment, $14 billion export sector was crumbling, the APTMA said.]]>
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			<title>Shutdown of CNG stations</title>
			<link>https://tribune.com.pk/story/316016/shutdown-of-cng-stations</link>
			<comments>https://tribune.com.pk/story/316016/shutdown-of-cng-stations#comments</comments>
			<pubDate>Tue, 03 Jan 12 17:00:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=316016</guid>
			<description>
				<![CDATA[The reality is that now we have little choice but to look abroad to meet our energy needs.]]>
			</description>
			<content:encoded>
				<![CDATA[All major highways leading into Islamabad and much of the frontier province were blocked by hordes of angry transporters, protesting yet another shutdown of CNG stations. Their anger is understandable since they rely on a steady supply of gas to earn a living, but shutting down major transport routes does nothing but deflect anger from the government and towards the transporters. The fact is that the gas crisis has been many years in the making and, short of a massive price hike to reduce demand, there are no easy short-term solutions. For years, we had been told that gas was a cheaper, more environmentally-friendly option to fuel and that it was available in abundance at home and so would not need to be imported. To convince people to make the shift, the government subsidised gas well below the market rate. We became such a gas-consuming nation that Pakistan has more CNG-equipped cars than any other country in the world. And now, surprise surprise, we are facing a gas shortage of one billion cubic feet. Yes, the government is to blame for encouraging the use of gas for so many years and then showing no interest in tapping new gas reserves but now that we are in this mess, mass protests will be futile and counterproductive.

In the longer term, the only option that is available — and it is a good one — is to start work on building regional pipelines. Turkmenistan has one of the largest gas reserves in the world and Pakistan has inked an agreement with the former Soviet state to build the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline that should be operational by 2016. This could lead to the import of as much as 10 billion cubic metres a year. The only potential problem with the TAPI pipeline is the security situation since, the proposed pipeline will run through Herat and Kandahar in Afghanistan and Quetta in Pakistan. The only other alternative is to ignore US demands and finally build a pipeline that will allow us to import gas from Iran. What solution we ultimately do pursue to make up for our gas shortage, the reality is that now we have little choice but to look abroad to meet our energy needs.

Published in The Express Tribune, January 4th, 2012.]]>
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			<title>Textile millers to start protest drive</title>
			<link>https://tribune.com.pk/story/315976/gas-supply-suspension-aptma-announces-series-of-protests</link>
			<comments>https://tribune.com.pk/story/315976/gas-supply-suspension-aptma-announces-series-of-protests#comments</comments>
			<pubDate>Tue, 03 Jan 12 13:56:46 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315976</guid>
			<description>
				<![CDATA[APTMA says they did not receive any gas for 20 days in December.]]>
			</description>
			<content:encoded>
				<![CDATA[Taking cue from the compressed natural gas (CNG) dealers, the textile millers will launch a series of protests from today (Wednesday) against suspension of gas supply for a whole month.

Speaking at a press conference here on Tuesday, All Pakistan Textile Mills Association (Aptma) Chairman Ahsan Bashir said though the millers tried to cooperate with the government, the industry was not provided gas for 20 days in December. “Now Sui Northern Gas Pipelines has said the industry will have to wait for at least a month (January) for gas,” he said.

Former Aptma chairman Gohar Ijaz said the textile sector required only 350 million cubic feet of gas per day (mmcfd), which could easily be provided through import of liquefied natural gas (LNG). The project would cost only $200 million and would easily overcome the gas shortage which stood at only 1,000 mmcfd, he said.

Published in The Express Tribune, January 4th, 2012.]]>
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			<title>CNG strike enters 6th day in twin cities, protests continue across country</title>
			<link>https://tribune.com.pk/story/315927/cng-strike-enters-6th-day-in-twin-cities-protests-continue-across-country</link>
			<comments>https://tribune.com.pk/story/315927/cng-strike-enters-6th-day-in-twin-cities-protests-continue-across-country#comments</comments>
			<pubDate>Tue, 03 Jan 12 08:42:45 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315927</guid>
			<description>
				<![CDATA[Transporters, CNG association protest in Islamabad, Rawalpindi, Peshawar. Police resort to baton charging protestors.]]>
			</description>
			<content:encoded>
				<![CDATA[The CNG strike entered its sixth day and the transport strike continued for the second day in Islamabad and Rawalpindi, while citizens from all over the country protested on the roads, Express News reported on Tuesday.

Despite the fulfillment of their demands by the government, the CNG association has announced that the strike will continue.

The road connecting Islamabad and Rawalpindi remained blocked by protesters for four hours. In the Faizabad area of Rawalpindi, the police resorted to aerial firing, baton charging and shelling to disperse protestors.

The protesters also pelted the police with stones.

The CNG association in Islamabad planned to hold a sit-in outside the parliament and to have talks with the government over the current gas crisis; however, no government representative showed up at the parliament. The sit-in could also not be held as the protesters were blocked from entering any area leading towards the parliament.

Protest in Peshawar

In Peshawar, around 1,500 rickshaw drivers protested at the Faqirabad Chowk for the release of Rickshaw Union President Amanullah, who was earlier arrested by the police. They also demanded the return of the confiscated rickshaws. The drivers have planned to move towards GT Road to put forward their demands to the higher authorities.

The police baton charged the rickshaw drivers during the protest to disperse them and to stop them from moving towards the GT Road.]]>
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			<title>In times of peril: ‘Petrol prices up 47% in four-year period’</title>
			<link>https://tribune.com.pk/story/315837/in-times-of-peril-%e2%80%98petrol-prices-up-47-in-four-year-period%e2%80%99</link>
			<comments>https://tribune.com.pk/story/315837/in-times-of-peril-%e2%80%98petrol-prices-up-47-in-four-year-period%e2%80%99#comments</comments>
			<pubDate>Tue, 03 Jan 12 00:34:12 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315837</guid>
			<description>
				<![CDATA[Government continued to increase petroleum product prices, despite downfall in international markets between 2008-2011]]>
			</description>
			<content:encoded>
				<![CDATA[Consumers have borne a whopping 47 per cent increase in the prices of petroleum products under the Pakistan Peoples Party (PPP)-led government, lawmakers were told on Monday.

“The government increased Rs33 per litre in petroleum prices,” Petroleum and Natural Resources Minister Dr Asim Hussain informed the National Assembly in a written reply.

The minister acknowledged that government continued to increase petroleum product prices, despite the severe downfall in oil prices on the international market between 2008 and 2011.

“It’s the highest ratio of inflation in petroleum products after 2001 which has pushed poor people out onto the streets,” said Muttahida Qaumi Movement (MQM) MNA Syed Asif Hasnain.

“Oil prices were increased by 32% in 2011 alone,” Parliamentary Secretary for Petroleum and Natural Resources Engineer Muhammad Tariq Khattak informed the lower house. Currently, he noted, the government is not giving any subsidy on petroleum products to consumers.

In response to hard-hitting questions by lawmakers from both the treasury and opposition benches, National Assembly Speaker Dr Fehmida Mirza on Monday revived a committee to take up the issue of sky-rocketing oil prices.

Last year, Prime Minister Yousaf Raza Gilani had constituted a parliamentary committee on energy headed by Finance Minister Hafeez Sheikh to develop proposals for the resolution of the energy crisis, including power generation. Later, Sheikh constituted two sub-committees to tackle the issues of energy and petroleum products. These committees, however, have yet to develop proposals to deal with the energy crisis and petroleum products’ prices.

However, it still remains unclear which of these committee was revived to take up the oil and gas issue.

This committee is also tasked with developing proposals to deal with issues including the Independent Power Producers (IPPs), circular debt, outstanding payments and a sustainable way forward to devise a permanent solution to liquidity issues of the energy sector.

Responding to a question, Khattak said that currently 64,811 barrels of crude oil per day was being produced in the country. “The total consumption of petroleum products in the country is 21 million tonnes. Around 15% of the oil demand is being met locally while the remaining is being imported,” he added.

The government spent $3.13 billion on importing 12,368 metric tonnes of petroleum products from different countries in 2010-11, it was revealed. Pakistan State Oil also arranges approximately 3 million tonnes of diesel annually from the Kuwait Petroleum Corporation, stated the minister in his reply.

The government also spent Rs2.45 billion repairing 120 Sui gas pipelines damaged in blasts in Balochistan and Khyber-Pakhtunkhwa during the last two years.

To a question posed by MNA Shaheen Iqbal, Khattak answered that the government issued 127 new licences to oil exploring companies during its tenure. “Around 56 new wells have been installed for production of oil and gas in various parts of the country,” he added.

To a supplementary question, Khattak said that 13% of the gas pipelines were registering leakages but measures were being taken to reduce them. He said the old pipes were being repaired to reduce the gas losses.

(Read: Starting Jan 1 - The little gas there is, may cost a lot more)

Published in The Express Tribune, January 3rd, 2012.]]>
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			<title>Gas crisis prompts back-to-back walkouts</title>
			<link>https://tribune.com.pk/story/315838/gas-crisis-prompts-back-to-back-walkouts</link>
			<comments>https://tribune.com.pk/story/315838/gas-crisis-prompts-back-to-back-walkouts#comments</comments>
			<pubDate>Mon, 02 Jan 12 23:54:05 +0500</pubDate>
			<dc:creator>
				<![CDATA[qamar.zaman]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315838</guid>
			<description>
				<![CDATA[PM Gilani leaves the house without making a policy statement.]]>
			</description>
			<content:encoded>
				<![CDATA[In the National Assembly, the government on Monday faced embarrassment over the snowballing gas crisis as one of its own coalition partners staged a walkout from the house. Lawmakers from the Muttahida Qaumi Movement (MQM) and opposition Pakistan Muslim League-Nawaz (PML-N) staged back-to-back walkouts from the assembly in protest against a massive increase in CNG prices and the government’s gas load management plan.

In a rare move, Leader of the House Yousaf Raza Gilani earlier met with leaders from the allied parties and left the house without making a policy statement over the gas crisis which has sparked violent countrywide protests.

The prime minister went up to the seat of Asfandyar Wali Khan, chief of the Awami National Party, where Pakistan Muslim League-Quaid leader Chaudhry Pervaiz Elahi and MQM legislator Haider Abbas Rizvi were also present. After a brief chit-chat with them, the prime minister left the house.

PML-N lawmakers Chaudhry Barjees Tahir, Malik Abrar, Tehmina Daultana and Mehtab Abbasi came down hard on the government for its ‘failure to overcome the gas crisis.’

They called upon the government to concede its failure, step down and call fresh parliamentary elections before a “dictator steps in or the Supreme Court hands down a verdict.”

In response, Minister for Water and Power Naveed Qamar acknowledged the gravity of the situation. He promised that the situation would improve within a ‘few days’. But he didn’t say how his ministry would bridge the two billion cubic feet gap in demand and supply of gas.

Qamar requested the opposition to not politicise the issue and instead “work hand in hand with the government to overcome this crisis.”

But PML-N legislator Malik Abrar shot back: “You should resign if you do not have a solution. We don’t want to share the blame for your negligence.”

At this moment, Mehtab Abbasi stepped in – announcing a walkout from the house. “We don’t want to topple the government but the people do,” he asserted. He also criticised the prime minister for leaving the house without making a policy statement on the issue.

MQM legislator Syed Asif Husnain complained to Chairman Nawab Yousaf Talpur that the government had not allowed his party to move a call attention notice to avoid embarrassment.

His party’s lawmakers, later, walked out from the proceedings to protest the government’s ‘non-serious attitude.’

Since neither the prime minister nor the petroleum minister was in the house, Religious Affairs Minister Khursheed Shah stood up to respond to the MQM’s call attention notice. The party had sought a government justification for the 14 per cent increase in CNG prices.

“Every year, the country faces gas shortage but this time around protests are being engineered,” Shah said and described MQM’s walkout as a move to gain political mileage out of the issue.

Justifying the hike in CNG prices, Shah said, “We have not increased tariff for domestic consumers.”

Published in The Express Tribune, January 3rd, 2012.]]>
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			<title>CNG stations shutter amid strike calls</title>
			<link>https://tribune.com.pk/story/315279/cng-stations-shutter-amid-strike-calls</link>
			<comments>https://tribune.com.pk/story/315279/cng-stations-shutter-amid-strike-calls#comments</comments>
			<pubDate>Mon, 02 Jan 12 04:43:56 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315279</guid>
			<description>
				<![CDATA[Association announces indefinite strike, alleges the shortage is artificial, deliberate.]]>
			</description>
			<content:encoded>
				<![CDATA[Resentment against the worsening gas shortage and a simultaneous hike in gas price boiled over on Sunday, with various associations calling for strikes and protests in Punjab and Khyber-Pakhtunkhwa.


The Compressed Natural Gas (CNG) industry meanwhile alleged that gas shortage is artificial and deliberate, designed to allow for imports of more expensive alternatives – LPG and LNG – and favour business tycoons involved.

Strikes, protests

The CNG association is on strike that will continue indefinitely until the government withdraws the gas price hike, said Chairman All-Pakistan CNG Association (APCNGA) Ghyias Paracha while addressing a press conference.

As many as 2,250 CNG stations in Punjab and 7 out of 8 CNG stations in Balochistan have been shuttered, he said.

Paracha also demanded the withdrawal of ban on use of CNG in commercial vehicles.

His strike call was echoed by Khyber-Pakhtunkhwa CNG association president Pervez Khattak who announced that over 600 CNG stations throughout the province will be shut for an indefinite period starting Monday.

The strike on Sunday, however, was reportedly partially observed in Lahore, with more than half of city’s CNG stations open for business.

Meanwhile, president transporters’ association Raja Changez Khan also announced a strike in Islamabad and Rawalpindi on Monday (today).

‘Deliberate’ crisis

Paracha also accused the Sui Northern Gas Pipelines Limited (SNGPL) of ‘willfully aggravating the gas crisis’.

The utility requires 2,500 million cubic feet per day (mmcfd) of gas ‘packed’ in pipelines to keep the system functional. The entity’s documents, however, show that 2,830 mmcfd of gas on December 30, 2011, Paracha said.

“The SNGPL is willfully blocking 330 mmcfd of gas in the system,” Paracha said, adding that the government wanted to place the responsibility of the shortage on the CNG sector, which uses only 7.8%, or roughly 310 mmcfd, of total gas available in the country.

According to a recent energy audit conducted by the petroleum ministry, 1 mmcfd of gas can be used to produce 38 to 42 tons of urea by a fertiliser plant, generate three to six megawatts of electricity by a power plant, fulfill the demand of 10,000 domestic consumers or six CNG stations.

Paracha accused the petroleum minister for deliberately creating the shortage to support two business tycoons involved in LPG trade. The gas supply is blocked in order to create a level playing field for costlier LNG and LPG imports, he said. A state-owned entity has taken over LPG storage facilities at the port, he further said, adding that the private sector could not set up storage plants at the LPG terminal without the petroleum minister or secretary’s permission.

“This is another monopoly being created in public sector to destroy the private sector,” he alleged.

[With additional input by our correspondents in Lahore and Peshawar]

Published in The Express Tribune, January 2nd,  2012.]]>
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			</item><item>
			<title>Gas shortage to cost economy dearly</title>
			<link>https://tribune.com.pk/story/315045/gas-shortage-to-cost-economy-dearly</link>
			<comments>https://tribune.com.pk/story/315045/gas-shortage-to-cost-economy-dearly#comments</comments>
			<pubDate>Mon, 02 Jan 12 02:52:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[ghazanfar.ali]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315045</guid>
			<description>
				<![CDATA[Analyst says smooth energy supply would have taken growth to 6%.]]>
			</description>
			<content:encoded>
				<![CDATA[The persistent gas crisis has shaken the very roots of the industry, particularly in Punjab, with export and economic growth targets in jeopardy, which if remain unmet will bring more unemployment and poverty, experts say.

Sui Northern Gas Pipelines Limited (SNGPL) announced on Friday last week that gas supply to all industries, except for fertiliser plants, in Punjab had been suspended for an indefinite period because of severe shortage. However, residential consumers will continue to get gas.

Petroleum Minister Dr Asim Hussain also said that January would be a month of gas emergency and warned that supply to all industries and compressed natural gas (CNG) stations across the country could be stopped for the entire month. According to the minister, the gas shortfall has risen to more than one billion cubic feet per day.

“Gas suspension will have a drastic impact on the industry as well as the economy. Already, the energy shortage and high interest rates have put a heavy strain on the large-scale manufacturing sector, whose growth has been negligible for the last three years,” said Hamad Aslam, Research Head at Lakson Investments.

He said the energy shortage and inter-corporate debt would shave 3.5 per cent off economic growth, adding had those issues been not there, the gross domestic product (GDP) would have grown 6 per cent this fiscal year, keeping in view the revised GDP growth target of 3.5 per cent.

Exports are projected to be around $24 to $25 billion this year, with major contribution from the textile industry. However, this is also under threat as textile industries are mostly based in Punjab.

In the face of energy shortage, the large undertakings do have the option of installing their own power-generating plants based on coal or alternative energy. Aslam cited coal-fired plants as a viable option but cautioned that international coal prices remained volatile and any sharp rise in prices would increase substantially the power cost for the industry.

At present, coal prices are in the affordable range of $100 to $110 per ton in the world market.

Recently, Lucky Cement announced that it had installed a power generating unit based on waste heat from the system and earned carbon credits under the Kyoto Protocol of the United Nations.

In order to immediately tackle the gas crisis, Aslam suggested that the government should import liquefied natural gas (LNG) and pump it into gas pipelines.

Irfan Qaiser Sheikh, President of Lahore Chamber of Commerce and Industry, the premier chamber of Punjab, said all big chambers and trade associations of the province had been called for a meeting on Monday to frame a joint strategy and future course of action to cope with the energy problem.

“In Punjab, there has been a total shutdown of the industry for the past four days and jobs of four million daily wage-earners are under threat,” he said.

Sheikh pointed out that despite the closure, the industry had to pay some costs, like mark-up on loans and wages to employees, adding to mitigate the pain they had urged the government to ask the State Bank to waive interest payments for two months.

However, he did not agree that the industrial units should bring their own power-generating facilities. “It is not a simple alternative and is an expensive solution which everybody cannot afford.”

Already, energy accounts for 20 to 25 per cent of the total cost of general industry while in the case of textile the cost is around 35 per cent.

Published in The Express Tribune, January 2nd,  2012.]]>
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			<title>Fuel crisis: 6 hours a day gas closure at CNG stations</title>
			<link>https://tribune.com.pk/story/315188/fuel-crisis-6-hours-a-day-gas-closure-at-cng-stations</link>
			<comments>https://tribune.com.pk/story/315188/fuel-crisis-6-hours-a-day-gas-closure-at-cng-stations#comments</comments>
			<pubDate>Sun, 01 Jan 12 22:57:24 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=315188</guid>
			<description>
				<![CDATA[Extra curtailment for Sheikhupura, areas in Lahore with low gas pressure.]]>
			</description>
			<content:encoded>
				<![CDATA[Sui Northern Gas Pipelines Limited (SNGPL) has decided to cut the gas supply to CNG stations in Sheikhupura and some regions of Lahore by six hours a day, adding to the three-day weekly closure of CNG stations, for the benefit of domestic consumers in low pressure areas.


Captain Shuja, the vice chairman of the the All Pakistan CNG Association (APCNGA), which launched a Pakistan-wide strike of CNG stations on Sunday, said that the association would announce its official reaction to the decision after holding discussions.

He said that Sheikhupura CNG stations had received notices from SNGPL for the additional hours of gas curtailment. He said that in some areas of Lahore, SNGPL shut off supply to CNG stations during peak times for three hours in the morning and three in the evening. “They tried this tactic last year as well but had to stop it after the association protested strongly,” he said.

Rehan Aziz, SNGPL general manager (sales), said the company had taken the initiative at Captain Shuja’s suggestion. He said that after the Lahore High Court recently dismissed a petition filed by the association, Shuja had suggested that the SNGPL implement hourly curtailment in areas with low gas pressure.

“The company has taken the step for the benefit of domestic consumers. The CNG compressors in these regions mean domestic consumers get low gas pressure during peak hours and they can’t even run the stove,” he said.

Aziz said that domestic consumer were SNGPL’s highest priority customers.

CNG strike

Meanwhile, there was mixed observance of the strike called by the APCNGA in Punjab in protest at increased gas prices. More than half the CNG stations in Lahore remained open on Sunday, the first day of the strike, as the All Pakistan CNG Dealers Association did not back the strike call.

Many APCNGA members also opened their stations later in the day. Long queues began forming at CNG stations at night, which is normal on Sunday evening as the gas closure begins on Monday morning.

Shuja said that the APCNGA had expected that the strike would only be half-observed in Lahore as the APCNGDA had made clear they would not back the strike. However, he said that the other association was strong only in Lahore and stations elsewhere in Punjab remained closed on Sunday. He said the strike would continue till the gas price hike was cancelled.

Published in The Express Tribune, January 2nd,  2012.]]>
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			<title>CNG unions differ on nationwide strike call</title>
			<link>https://tribune.com.pk/story/314719/cng-unions-differ-on-nationwide-strike-call</link>
			<comments>https://tribune.com.pk/story/314719/cng-unions-differ-on-nationwide-strike-call#comments</comments>
			<pubDate>Sun, 01 Jan 12 07:18:35 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314719</guid>
			<description>
				<![CDATA[SNGPL spokesman says one-month closure not final.]]>
			</description>
			<content:encoded>
				<![CDATA[An association that claims to represent half the CNG pumps in the Punjab has suggested that it will not join the strike called by the All Pakistan CNG Association (APCNGA) from Sunday.


The APCNGA has called an indefinite, nationwide strike in protest at the recent hike in CNG prices and infrastructure development surcharge notified by the Oil and Gas Regulatory Authority (OGRA). The association had already observed a successful strike in Sindh.

But a spokesman for the All Pakistan CNG Dealers Association (APCNGDA), which represents CNG stations installed alongside petrol pumps and is affiliated with the Pakistan Petroleum Dealers Association (PPDA), said that going on strike would only hurt its members.

“Everyone is frustrated by the energy crisis,” said Khawaja Atif, the association’s information secretary. “CNG stations are also losing money as there is no gas for three days and then low pressure for the rest of the week. The government is discouraging the CNG sector and if we go on strike indefinitely it will help them. Around 50 per cent of the pumps in the Punjab are our members and most of them are against the strike.”

A CNG station owner who is a member the APCNGA told The Tribune that he was not in favour of the closure. “The gas curtailment has already hurt our business a lot,” he said. “I have invested millions of rupees in this station and my family and my workers’ families depend on it.”

He said he would make a final decision depending on what other stations decide. “I will see. If some stations open then I will also open,” he said.

Ghayas Paracha, chairman of the APCNGA Supreme Council, said that the APCNGDA had cooperated in the Sindh strike and he would be surprised if they did not join the nationwide strike. “I don’t know what their agenda is,” he said. “But we will strike till the government withdraws its rate hike.”

Meanwhile, a spokesman for the Sui Northern Gas Pipeline Limited said that the company was still awaiting orders from the ministry concerning a mooted closure of gas supply to CNG stations for one month. “It’s an option but a final decision has not been made,” he said. “

The CNG supply to different regions of Punjab will continue as per schedule until further orders.”

Published in The Express Tribune, January 1st, 2012.]]>
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			<title>‘Happy’ blue year: New Year festivities marred by CNG crisis</title>
			<link>https://tribune.com.pk/story/314683/%e2%80%98happy%e2%80%99-blue-year-new-year-festivities-marred-by-cng-crisis</link>
			<comments>https://tribune.com.pk/story/314683/%e2%80%98happy%e2%80%99-blue-year-new-year-festivities-marred-by-cng-crisis#comments</comments>
			<pubDate>Sun, 01 Jan 12 06:06:12 +0500</pubDate>
			<dc:creator>
				<![CDATA[sehrish.wasif]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314683</guid>
			<description>
				<![CDATA[Schoolteacher says her excitement about New Year turned into worry after hearing about strike.]]>
			</description>
			<content:encoded>
				<![CDATA[The government’s decision to raise CNG price to an all-time high of Rs74.30 per kg and the resulting indefinite strike announced by gas stations have put a spanner in people’s plans for New Year.


A schoolteacher, Shela Zaidi, said she was looking forward to the New Year but after hearing about the strike her excitement turned into worry. She said the taxicabs already demand high fares and with the increase in the price of CNG, travelling on taxicabs will become unaffordable. “I really don’t know how I will go to work.”

The strike is expected to result in increased transportation issues around the city, with many wagons and buses expected not to operate at all.

Mohammad Ali, a university student said he did not even think about forming New Year resolutions this year. “I guess we all are too occupied trying to adjust to a life with fewer and fewer necessities,” he said. Without public transport, he added, he will not able to go to college.

Naseem Akhtar, who works at a beauty parlour, said, “On TV I see people around the world happily celebrating New Year, and in Pakistan we are stuck with the memogate issue, skyrocketing inflation, gas and electricity load shedding. And now there won’t even be any public transport.”

The transporters say they stand to lose the most, as their livelihoods are at stake.

Taxi driver Ahmed Khan said, “With no CNG for months, all we are concerned about is how we will provide for our families.” All Pakistan CNG Association Chairperson Ghiyas Paracha said “the people and the CNG association rejected this New Year’s gift.”

He added the strike in CNG stations will continue till the government takes back its decision and reduces CNG prices.

Published in The Express Tribune, January 1st, 2012.]]>
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			<title>Switching over: OGRA, stakeholders shoot down CNG-to-LPG idea</title>
			<link>https://tribune.com.pk/story/314838/switching-over-ogra-stakeholders-shoot-down-cng-to-lpg-idea</link>
			<comments>https://tribune.com.pk/story/314838/switching-over-ogra-stakeholders-shoot-down-cng-to-lpg-idea#comments</comments>
			<pubDate>Sun, 01 Jan 12 05:33:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314838</guid>
			<description>
				<![CDATA[LPG more expensive than both CNG and petrol and experts say it is more ‘dangerous’.]]>
			</description>
			<content:encoded>
				<![CDATA[The federal government’s proposed move to shift from Compressed Natural Gas (CNG) to Liquefied Petroleum Gas (LPG) hit a snag when the regulator, Oil and Gas Regulatory Authority (Ogra), strongly opposed it.


Earlier, Minister for Petroleum and Natural Resources Dr Asim Hussain had offered to set up LPG auto filling stations for the CNG industry at existing sites as alternate means of business to safeguard their investment.

His offer, however, was rebuffed by the CNG industry.

Meanwhile, the regulator has also opposed the use of LPG in transport sector, instead of CNG, terming it ‘more dangerous’ and economically ‘unviable.’

Economic viability and safety

LPG is expensive compared to both CNG and petrol.

The present price for LPG is Rs125 per kilogramme (kg), and is expected to rise to Rs134 per kg after a Rs9 per kg expected hike effective January 1, 2012.

The price of CNG, however, is Rs74.30 per kg in Khyber Pakhtunkhwa, Balochistan and the Potohar region, and Rs69.62 per kg in Sindh and Punjab, after the recent price hike.

Compared to a petrol-run vehicle, which costs Rs5.8 per kilometre on average, an LPG-run vehicle costs Rs6.25 per kilometre, according to working by the CNG association.

Experts also say that since LPG does not mix with the air after leakage, it is more dangerous as a fuel source for vehicles.

Ogra chairman Sabir Hussain confirmed that the regulator is not in favour of using LPG in the transport sector, saying it would put people’s lives at greater risk.

He added that LPG as fuel is not an economically viable option for the public either.

Shooting down the idea

When contacted, Chairman All-Pakistan CNG association Ghyias Paracha said they were offered to convert CNG stations into LPG.

“Why should we use LPG which is more epensive compared to petrol?” he said.

He added that the CNG industry has already invested billion of rupees and could not make further investments in setting up LPG stations.

“The influential lobby is involved in LPG business and wants to ruin the CNG industry by replacing it with LPG as fuel in the auto sector,” he added.

Refueling substandard cylinders

An Ogra official said that the regulator, in consultation with the All-Pakistan CNG Association, has decided to impose a ban on refueling CNG in public sector vehicles that use substandard cylinders.

The decision was taken in a recent meeting attended by representatives of Hydrocarbon Development Institute of Pakistan and the explosives department, he added.

He said that CNG stations were allowed to refuel vehicles that have company-fitted cylinders.

“During the last two-day inspection, Sui Northern Gas Pipeline Limited has disconnected gas supply to 13 CNG stations that were violating the decision of not refuelling CNG in vehicles with substandard cylinders,” he said.

“Ogra will continue inspection of CNG stations for strict compliance of safety procedures,” he said, adding that provincial governments had also been asked to take strict actions against illegal cylinder workshops.

Ogra chairman, however, ruled out that the regulator had imposed a ban on refuelling of CNG in public sector vehicles.

Published in The Express Tribune, January 1st, 2012.]]>
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			<title>CNG strike may boost oil demand</title>
			<link>https://tribune.com.pk/story/314790/cng-strike-may-boost-oil-demand</link>
			<comments>https://tribune.com.pk/story/314790/cng-strike-may-boost-oil-demand#comments</comments>
			<pubDate>Sat, 31 Dec 11 21:32:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314790</guid>
			<description>
				<![CDATA[If stoppage continues, cash-strapped PSO will have to increase imports.]]>
			</description>
			<content:encoded>
				<![CDATA[Sensing an increase in demand for oil products due to a strike by compressed natural gas (CNG) dealers, the government may press cash-strapped Pakistan State Oil (PSO) to step up imports of petroleum products, but it will put further strain on the company’s finances, sources say.


In recent days, the petroleum ministry and CNG dealers have been locked in a war of words over a hefty increase in gas prices and proposed load-shedding for four days a week. In protest, the All Pakistan CNG Association on Friday announced a country-wide strike for an indefinite period by the time problems were resolved.

Naturally, following the closure of CNG stations, the demand for diesel and petrol will rise, prompting more imports. However, whether PSO will be able to increase oil imports in the face of financial crunch is a big question mark.

According to sources, the receivables of PSO from power companies and other oil buyers have jumped to Rs182.7 billion compared to payables of Rs183.98 billion to domestic and international fuel suppliers. In addition to these, PSO has to get Rs1.38 billion in price differential claims on imported petrol.

“If CNG stations go on an indefinite strike across the country, additional imports of 2,500 to 3,000 tons of petrol per day will be required,” an official said.

At present, total monthly consumption of petrol is 250,000 tons, of which 100,000 tons are produced in the country and 150,000 tons are imported. Current petrol stocks can meet 16 days of requirement.

Sui Southern Gas Company (SSGC) is providing 1,000 tons of gas per day for vehicles while Sui Northern Gas Pipelines Limited (SNGPL) supplies 1,500 to 2,000 tons per day for the transport sector.

“How can PSO bear an additional import burden of 3,000 tons of petrol per day,” a senior PSO official said, adding increase in imports would add to the financial woes of the oil marketing company.

However, an official of the Ministry of Petroleum expressed hope that the government would soon be able to resolve issues of the CNG industry and saw no need for additional imports of petrol.

Published in The Express Tribune, January 1st, 2012.]]>
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			<title>Gas shutoff: APTMA ‘disappointed’ at SNGPL’s priorities</title>
			<link>https://tribune.com.pk/story/314565/aptma-disappointed-at-sngpl-priorities-in-gas-shutoff</link>
			<comments>https://tribune.com.pk/story/314565/aptma-disappointed-at-sngpl-priorities-in-gas-shutoff#comments</comments>
			<pubDate>Sat, 31 Dec 11 15:34:27 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314565</guid>
			<description>
				<![CDATA[‘Shortage could be overcome easily through LNG import from Qatar’.]]>
			</description>
			<content:encoded>
				<![CDATA[All Pakistan Textile Mills Association (Aptma) has asked the government to quickly implement alternate measures to overcome the gas crises which has all but closed a billion dollar textile industry. They withdrew their threat to stage public protests.

In a press briefing, the chairman of Aptma, Gohar Ijaz, in a disappointed and frustrated tone blamed the government of not taking appropriate alternate measures to overcome the long expected gas crises in the country. Ijaz said that the country had only 800 Mmcft of gas shortage, which could be easily overcome through LNG import from Qatar, or through the Iran-Pakistan gas pipeline project. “The process would take a maximum of one year, but I don’t know why government is delaying this very important project, and pushing the nation in to such a deep crises,” he said.

He said that the CNG industry had a share of only Rs42 billion annually, whereas the textile mills after fulfilling national requirements had $1 billion worth of exports. “80 per cent of the industry is in Punjab and around 10 million workers depend on this industry which is not the priority of the government,” Ijaz said, before making a swipe at the ruling government, “Government should tell us what should we do in such scenario, it is unable to run its state owned corporations like PIA, railways and if this industry would be closed then how government would manage to provide then jobs?”

Published in The Express Tribune, January 1st, 2012.]]>
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			<title>Pakistan going ahead with IP pipeline, despite US coercions</title>
			<link>https://tribune.com.pk/story/314087/pakistan-going-ahead-with-ip-pipeline-despite-us-coercions</link>
			<comments>https://tribune.com.pk/story/314087/pakistan-going-ahead-with-ip-pipeline-despite-us-coercions#comments</comments>
			<pubDate>Fri, 30 Dec 11 00:11:45 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=314087</guid>
			<description>
				<![CDATA[The US $7.6 billion gas pipeline deal aims to export a daily amount of 21.5 million cubic meters.]]>
			</description>
			<content:encoded>
				<![CDATA[Despite US pressure to desist from entering into an energy deal with Iran that would help lessen a mounting gas crisis, it seems Pakistan will be honouring its committment as work surges on the Iran-Pakistan gas pipeline, Iran state regulated Press Television reported on Thursday.

Iranian Press TV reported that construction work on the pipeline till Iran’s border has been completed.  And that the survey for the remaining feasibility on Pakistan’s land has concluded as well.

Pakistan is bearing losses due to energy crises and it would go ahead with different options including Iran,” The Nation quoted a Pakistani official as saying on Thursday.

The Pakistani source added Islamabad had not backed down from its trade agreement with Iran.

On December 19, high-ranking Islamabad diplomats said the administration of Barack Obama is frustrated with the “rapid progress” of Pakistan's gas project with Iran, and is exhausting all its resources to sabotage the deal.

“They (US officials) have gone to the extent of threatening President Asif Ali Zardari of economic sanctions if work is not stopped immediately,” the official said.

Zardari, however, reportedly dismissed the threats, bluntly asserting that the commissioning of the project is vital and inevitable for the well being of Pakistan's “fast crumbling” economy.

Earlier last week, Pakistan's largest bank National Bank of Pakistan (NBP) and the country’s largest exploration company Oil and Gas Development Company Limited (OGDC) refused to finance the project. NBP had its branches in different countries of the world and therefore it feared that these branches could be closed due to US sanctions against Iran. Whereas OGDC, already cash constrained due to the huge circular debt, said that its US investors, having a 1.6% share in the company, had threatened to retreat if the company financed the IP gas pipeline project.

The US $7.6 billion gas pipeline deal, which was signed in June 2010, aims to export a daily amount of 21.5 million cubic meters (or 8.7 billion cubic meters per year) of Iranian natural gas to Pakistan.

Iran and Pakistan finalised the details of the deal during bilateral talks held in Tehran in October 2007.

In addition to exporting gas to Turkey, Armenia, and Pakistan, Iran is currently negotiating gas exports to Iraq.]]>
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			<title>Energy crisis: Gas supply shut indefinitely for industries in Punjab</title>
			<link>https://tribune.com.pk/story/313679/energy-crises-sngpl-shuts-gas-indefinitely-to-punjab-industry</link>
			<comments>https://tribune.com.pk/story/313679/energy-crises-sngpl-shuts-gas-indefinitely-to-punjab-industry#comments</comments>
			<pubDate>Thu, 29 Dec 11 15:42:27 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313679</guid>
			<description>
				<![CDATA[Move aimed at protecting domestic users as gas pressure drops to alarming level.]]>
			</description>
			<content:encoded>
				<![CDATA[Sui Northern Gas Pipelines Limited (SNGPL) has announced gas curtailment for all industries of Punjab for an indefinite period of time. According to a notification issued by the company, the decision was taken to provide the gas to its domestic consumers.

However, the fertiliser sector will be provided with gas as per the agreement as SNGPL officials said that if they disconnect gas to fertiliser sector then it would be contempt of court.

SNGPL has updated its website as well in this regard. Industrial Zone II of Punjab was scheduled to resume gas supply from today, but this did not happen.

Accordaing to SNGPL, due to a country-wide gas shortage the company is currently facing a shortfall of 700 mmcfd. Company officials say that the total demand on the SNGPL network is 2,600 mmcfd and the supply is about 1,900 mmcfd.

SNGPL is still waiting for instructions from the Ministry of Power and natural Resources on how to manage the gap but in the meantime has  planned to shut down the industry in Punjab till further notice.

The company has also planned to disconnect gas to all CNG stations of Punjab from next month if the situation persists, however the final decision would be taken with the compliance of the ministry.

The company spokesperson told The Express Tribune that the gas line Pack (gas pressure in the pipe line) had come down to 2,600 mmcft which has forced the company to take this decision. He said that if the pressure drops to 2,500 the entire system will collapse and it takes a week to revive it.

The gas pressure for domestic consumers on the other hand was also observed to be low in most parts of the provincial metropolis. The company held CNG stations responsible for this.

The domestic consumers have a total demand of 650 Mmcft gas and is provided with almost the same demand. The general industry demands 440 Mmcft of gas and was provided with only 250 Mmcft gas. Similarly Textile industry has total demand of 210 Mmcft and was provided with 120 Mmcft gas. Fertilizer sector requires 240 Mmcft gas and is provided with 175 Mmcft of gas. CNG sector requires 325 Mmcft gas and was provided with 260 Mmcft gas.

All Pakistan textile Mills Association (APTMA) has now decided to come on roads in protest. APTMA chief Gohar Ijaz said that the textile industry has already suffered a lot due to the energy crises,

Hundreds of workers and owners of textile industries staged a protest demonstration on the motorway (M-3) to express their resentment over the suspension of gas supply to industrial units. The demonstrators belonging to different textile units of the city blocked the Kamalpur Interchange (M-3) that caused suspension of vehicular traffic on the motorway for more than 2 hours. Muhammad Naveed, a daily wager, participating in the demonstration said that if mills worked for six days a month, how could they make their living and provide bread to their family and small children? Another protester Ghulam Rasool said the new gas load management plan was a well-calculated and well thought-out conspiracy against the present regime in the province and the people sitting at the helm of affairs must understand the importance of the industry.

Published in The Express Tribune, December 30th, 2011.]]>
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			<title>Gas shortfall has reached 1b cubic feet: Petroleum minister</title>
			<link>https://tribune.com.pk/story/313644/gas-shortfall-has-reached-1b-cubic-feet-petroleum-minister</link>
			<comments>https://tribune.com.pk/story/313644/gas-shortfall-has-reached-1b-cubic-feet-petroleum-minister#comments</comments>
			<pubDate>Thu, 29 Dec 11 10:41:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313644</guid>
			<description>
				<![CDATA[Petroleum and Natural Resources Minister Dr Asim says gas supply to CNG stations, industries to be slashed in January.]]>
			</description>
			<content:encoded>
				<![CDATA[Petroleum and Natural Resources Minister Dr Asim Hussain said on Thursday that that the gas shortfall has reached one billion cubic feet, reported Express News.

Speaking to the media in the Daultala area of Gujjar Khan on the inauguration of Adhi Oil Field, Hussain said that in the month of January, gas supply to Compressed Natural Gas (CNG) stations and industries will be slashed.

He also alleged that the previous government had been involved in the exploitation of gas resources and profiteering.

The minister also said that the CNG association should “stop lying” and added that they earn a profit of Rs28 per kg. He distributed shares to Adhi Oil Field under the Benazir Employees Stock scheme and also announced a bonus for the employees.

Earlier on Wednesday, the petroleum ministry finalised a summary of hikes in gas prices and has sought formal approval from the prime minister.

According to the summary, consumers will face a hike between 14 and 207 %, in order to generate Rs385 billion for gas utilities and import projects.

If the summary is approved, the price of CNG would rise from Rs67 per kilogramme (kg) to Rs80 per kg – a hike of Rs13 per kg.

Liquefied Petroleum Gas (LPG) will cost an additional Rs14 per kg after the imposition of Petroleum Levy worth $120 per ton on locally-produced LPG. This hike would generate Rs4 billion in additional revenue for the government in a year.]]>
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			<title>Cutting corners: First electricity theft, now gas</title>
			<link>https://tribune.com.pk/story/313530/cutting-corners-first-electricity-theft-now-gas</link>
			<comments>https://tribune.com.pk/story/313530/cutting-corners-first-electricity-theft-now-gas#comments</comments>
			<pubDate>Thu, 29 Dec 11 05:29:06 +0500</pubDate>
			<dc:creator>
				<![CDATA[obaid.ur.rehman]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313530</guid>
			<description>
				<![CDATA[Many local eateries and tandoors have invested in a locally-made compressor.]]>
			</description>
			<content:encoded>
				<![CDATA[They say that necessity is the mother of invention. Some innovative small businessmen in Rawalpindi have come up with a solution to their gas load-shedding problems – although their resourcefulness does come at the expense of others.


Many local eateries and tandoors have invested in a locally-made compressor, which works like a suction pump does for water lines. The compressor sucks the gas supply from the main line, depriving others of their share.

A small compressor costs Rs1,500 with an additional Rs500 for installation. The cost can go up to Rs4,000 for larger compressors. The beauty of the arrangement is that these compressors do not make any sound – unlike suction pumps – and thus cannot be detected by gas company inspectors.

Those involved in the scam are celebrating their abundant supply of gas. When probed for guilty-feelings, they say they have no choice.

“I am not facing any shortage due to this small component,” said Sultan Ali from Rawalpindi Cantonment. “I know it is illegal but what can we do? The government has allotted CNG stations to wealthy people, but poor people like me who earn a small amount from my trade are suffering.”

Rehmat Ali, a tandoor shop owner, said that he justified the theft as a matter of economic survival. A small Pakistan-made compressor which is used in airconditioners or refrigerators costs between Rs600 and Rs1,000. These compressors are now being sold for much more as demand increases, says Atif Mehmood, a shopkeeper on City Road who sells these items.

Sui Gas Company officials say that the company knows of the nefarious practice and will conduct a survey once the legal requirements are fulfilled.

Published in The Express Tribune, December 29th, 2011.]]>
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			<title>Gas shortage: New management plan for Haripur, Abbottabad</title>
			<link>https://tribune.com.pk/story/313405/gas-shortage-new-management-plan-for-haripur-abbottabad</link>
			<comments>https://tribune.com.pk/story/313405/gas-shortage-new-management-plan-for-haripur-abbottabad#comments</comments>
			<pubDate>Thu, 29 Dec 11 02:32:19 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313405</guid>
			<description>
				<![CDATA[CNG stations to remain closed for six hours daily.]]>
			</description>
			<content:encoded>
				<![CDATA[To cope with increasing complaints of low gas pressure in residential areas in Abbottabad and Haripur, Sui Northern Gas Pipeline Limited (SNGPL) authorities presented a gas load management plan on Wednesday.


Under the plan, gas supply would be suspended to CNG stations during peak hours every day. The plan, chalked out with the consent of the CNG association, suggests uninterrupted gas supply to all 85 CNG stations in Haripur and Abbottabad. However, they have been directed to stop selling CNG to consumers between 6am and 9am and between 5pm and 8pm daily.

It was also decided that the violators would be penalised with suspension of gas supply.

It was also reported that the decision would remain effective for two-and-a-half months or until the gas supply improves in the two districts.

Residents of both districts had been complaining of low gas pressure for the last three weeks following the onset of winter, while CNG stations in Mansehra have already been observing gas loadshedding during these hours since last week.

Published in The Express Tribune, December 29th, 2011.]]>
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			<title>Starting Jan 1: The little gas there is, may cost a lot more</title>
			<link>https://tribune.com.pk/story/313525/starting-jan-1-the-little-gas-there-is-may-cost-a-lot-more</link>
			<comments>https://tribune.com.pk/story/313525/starting-jan-1-the-little-gas-there-is-may-cost-a-lot-more#comments</comments>
			<pubDate>Thu, 29 Dec 11 00:49:31 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313525</guid>
			<description>
				<![CDATA[Petroleum ministry has sent a 14 to 207% hike summary to PM.]]>
			</description>
			<content:encoded>
				<![CDATA[There is little gas in the country, the petroleum minister told parliamentarians a few days ago – and now the little that there is, will cost a lot more starting January 1, 2012.


The petroleum ministry finalised a summary of hikes in gas prices on Wednesday, and now seeks formal approval from the prime minister, sources told The Express Tribune.

According to the summary, consumers will face a hike between 14 and 207 %, in order to generate Rs385 billion for gas utilities and import projects.

If the summary is approved, the price of Compressed Natural Gas (CNG) would rise from Rs67 per kilogramme (kg) to Rs80 per kg – a hike of Rs13 per kg.

Liquefied Petroleum Gas (LPG) will cost an additional Rs14 per kg after the imposition of Petroleum Levy worth $120 per ton on locally-produced LPG. This hike would generate Rs4 billion in additional revenue for the government in a year.

Why the hike?

The proposed major hike in gas prices is a combination of two specific charges – a 14% increase in gas prices determined by the Oil and Gas Regulatory Authority (Ogra), and the imposition of a Gas Development Surcharge (GDS) to generate funds for import projects, including the Iran-Pakistan (IP) gas pipeline.

The former, increase in gas prices, will allow the Sui Northern Gas Pipeline Limited (SNGPL) to generate Rs217 billion and Sui Southern Gas Company (SSGC) Rs148 billion in six months till June 30, 2012 to meet revenue requirement. The government would collect Rs20 billion during the six-month period through GDC to finance gas import projects like IP and TAPI.

Who pays what?

Domestic and commercial consumers, and the cement sector, will face a uniform price hike of about 14%. These consumers have been exempted from the imposition of GDS.

Industrial units will face a hike of about 17% while CNG stations in region 1 (the Potohar region, including Islamabad and Rawalpindi, Balochistan and Khyber-Pakhtunkhwa) and 2 (Sindh and remaining areas of Punjab) will face increases of about 39 and 28% respectively.

The power sector, including the Karachi Electric Supply Company, will face a 13.6% hike in gas tariff while Independent Power Producers will pay an additional 34.6%.

The highest hike, 207%, is for fertiliser plants, which presently receive gas at a highly subsidised rate of Rs102 per million British thermal units (MMBTU).

Revenue for new projects

Against requests of 30 and 14 % tariff hikes by SNGPL and SSGC respectively, Ogra recommended 14 and 11 % tariff hikes to the government for the two companies.

If approved, SNGPL will receive an extra Rs15 billion for LNG infrastructure projects and Rs10 billion for financing parliamentarians’ schemes while SSGC will get an additional Rs5 billion for new gas schemes.

Being a relatively cheaper source of fuel, gas was being wasted in different sectors, said an energy analyst. The imposition of additional charges would help avoid its wastage, the analyst added.

Another expert said the GDS would be an unnecessary burden on consumers since the IP pipeline is in doldrums due to US pressure while TAPI is still a pipedream due to its planned passage through a volatile Afghanistan.

At present, gas is supplied to the fertiliser sector at Rs102 per mmbtu, IPPs at Rs377.39 per mmbtu, industrial consumers Rs434.18 per mmbtu, power sector Rs447.14 per mmbtu and CNG stations at Rs571.88 per mmbtu.

(Read: Energy crisis)

Published in The Express Tribune, December 29th, 2011.]]>
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			<title>Energy crisis</title>
			<link>https://tribune.com.pk/story/313210/energy-crisis</link>
			<comments>https://tribune.com.pk/story/313210/energy-crisis#comments</comments>
			<pubDate>Wed, 28 Dec 11 18:32:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313210</guid>
			<description>
				<![CDATA[It is imperative that the government exhibits the political will needed to execute both the IPI and TAPI projects.]]>
			</description>
			<content:encoded>
				<![CDATA[The cost of an ill-thought out energy policy is being felt acutely this winter, with a two-month ban on gas supply to CNG stations contemplated in Punjab, gas supply closure to industrial units in Sindh and Balochistan and non-supply of gas to domestic consumers.

The blame, of course, lies in the Musharraf-era policy of promoting a fuel whose reserves were unknown but ignorantly declared abundant, with the result that today demand for gas has soared to eight billion cubic feet (bcf) while supply is a paltry 4.2 BCF. While both consumers and industry are suffering, perhaps the worst affected is the fertiliser industry which uses gas as an essential raw material and has no other alternative.

Load-shedding is merely a stopgap measure and a massively unpopular one at that. The key question is, what energy resources are being developed for future use? At this juncture the government needs to develop a new exploration policy for domestic gas reserves. While Iran has massive gas reserves, the Iran-Pakistan gas pipeline project seems unlikelier by the day, given the current geo-political scenario. The US is strongly opposed to the pipeline and has been nudging Pakistan towards the hopelessly complicated TAPI pipeline project instead. On December 23, the National Bank of Pakistan refused to finance the IPI pipeline because of the threat of sanctions by the US. A recent purchase agreement signed with Turkmenistan has given some hope that a steady supply of gas may be achieved via TAPI by 2016, but that project is marred by numerous security threats.

It is crucial that we start looking to tap other sources of energy to prevent an energy crisis such as the one we are currently facing, from engulfing both consumers and industry in the future. It is imperative that the government exhibits the political will needed to execute both the IPI and TAPI projects. Above all, energy policy needs to be based on sound research after thorough number crunching, not mere bluster.

Published in The Express Tribune, December 29th, 2011.]]>
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			<title>Tribune Take: Where the government is wrong on CNG</title>
			<link>https://tribune.com.pk/story/313246/tribune-take-is-there-a-gas-shortage</link>
			<comments>https://tribune.com.pk/story/313246/tribune-take-is-there-a-gas-shortage#comments</comments>
			<pubDate>Wed, 28 Dec 11 17:45:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shaheryar Popalzai]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313246</guid>
			<description>
				<![CDATA[Khurram Baig, Business Editor, says the government will have to give in to transporters because of public demand.]]>
			</description>
			<content:encoded>
				<![CDATA[In today’s episode of Tribune Take, we take a look at the gas shortage which has hit the public transport and industries in Sindh and Punjab.

Khurram Baig, Business Editor of The Express Tribune, says that the government should increase the rate of gas it sells to the industries and make sure that a steady supply reaches those who require gas for production but not for power generation.

On the transportation front, he says that the government should have laid down a policy where certain vehicles would be allowed to have CNG kits intalled.

Regarding the transport strike in Karachi, Baig says that the government will have to give in here because of public demand and the availability of gas.

Read Khurram Baig’s articles here.

The Tribune Take daily news web show will appear on the tribune.com.pk home page.

The Take will feature in-depth interviews and analysis with editors and reporters who are covering the major stories, exploring front page events and major ledes. The news analysis covers the way The Express Tribune examines a story, how we cover it and why.]]>
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			<title>CNG body to shut down stations in Sindh, Karachi transporters call strike</title>
			<link>https://tribune.com.pk/story/313149/karachi-transporters-call-for-strike-beginning-december-31</link>
			<comments>https://tribune.com.pk/story/313149/karachi-transporters-call-for-strike-beginning-december-31#comments</comments>
			<pubDate>Wed, 28 Dec 11 10:32:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=313149</guid>
			<description>
				<![CDATA[Transporters protesting against the frequent closure of CNG stations in the city.]]>
			</description>
			<content:encoded>
				<![CDATA[All Pakistan CNG Association announced a shutdown of all CNG stations across Sindh from December 30, while the Karachi Transport Ittehad (KTI) has called for a strike beginning from December 31 in protest against frequent CNG strikes in the city, reported Express News on Wednesday.

President KTI Irshad Bukhari said that efforts were being made to convert public transport vehicles over to diesel; however, such efforts would fail as the vehicles would continue to run on CNG.

It is still unclear till when the transport strike is going to last.

Due to the gas shortage, CNG stations in Karachi are frequently being shut down every week, bringing a halt to public transport as a majority of them have converted to CNG in the past.

Federal Petroleum Minister Dr Asim Hussain had said that the government is considering shutting down CNG stations in Sindh for one month if the gap in demand and supply of gas continues.

According to experts, the rapid expansion of CNG stations - which consumes 11% of total gas - in the last decade has widened the gas demand-supply gap in the country.

Sui Southern Gas Company (SSGC) management says the CNG stations are being closed to improve the line pack all over the company’s franchise area of Sindh and Balochistan, which has been badly disturbed due to heavy gas demand.]]>
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			<title>Loadshedding: The winter of discontent</title>
			<link>https://tribune.com.pk/story/312968/loadshedding-the-winter-of-discontent</link>
			<comments>https://tribune.com.pk/story/312968/loadshedding-the-winter-of-discontent#comments</comments>
			<pubDate>Wed, 28 Dec 11 02:13:48 +0500</pubDate>
			<dc:creator>
				<![CDATA[sehrish.wasif]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=312968</guid>
			<description>
				<![CDATA[Residents irked over prolonged and unscheduled power and gas outages.]]>
			</description>
			<content:encoded>
				<![CDATA[As the gas outages continue to disrupt routine activities in the twin cities, the unscheduled power outages have further exacerbated the problem. In most of the areas, power outages are continuing for up to four to six hours.


“At home, you have no gas or electricity and when you step out, there is no CNG,” said Fareeha Javaid , a house wife and resident of Satellite Town Rawalpindi. “Earlier in times of gas shortages, we used electric heaters for cooking and heating purposes. But it seems there are no more alternatives now,” she added.

Malik Tariq, a resident of Saidpur Road said, “Gas outages in winters make sense to some extent. But what about electricity? Already people of this country are faced by skyrocketing inflation and a sense of insecurity, and now this added misery has created havoc in our lives.” He added that some areas in Rawalpindi were also facing water shortage.

Vexed by the “winter of discontent” Fawad Shah, a college student,  said, “At this frequency, it has become difficult to charge appliances of everyday use like cell phones and lap tops.” He added that because of this, he was having trouble in finishing his assignments and projects on time.

Zaheer Awan, a banker, had a similar story to share. He said, “Long queues at CNG stations throughout the day and night, people shivering in the cold without proper insulation systems, women making all-out efforts to provide three times meal for their families. All of this reflects rather poorly on the government, who claim to provide us with basic amenities.”

Furthermore, Ashraf Khan, a salesman at a bakery in Satellite Town said, “Due to gas shortage, we are unable to bake on time, especially the items used for breakfast. As a last resort, we are using wood for baking purposes,” he said.

Published in The Express Tribune, December 28th, 2011.]]>
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			<title>Gas shortage: Businessmen fear massive layoffs</title>
			<link>https://tribune.com.pk/story/312853/gas-shortage-businessmen-fear-massive-layoffs</link>
			<comments>https://tribune.com.pk/story/312853/gas-shortage-businessmen-fear-massive-layoffs#comments</comments>
			<pubDate>Tue, 27 Dec 11 21:24:05 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=312853</guid>
			<description>
				<![CDATA[40 per cent of industrial units in Punjab run on gas.]]>
			</description>
			<content:encoded>
				<![CDATA[Businessmen have expressed fears that suspension of gas supply for four days a week will lead to massive layoffs in the industry and asked the government to take back the decision for the sake of economy.


In a statement issued on Tuesday, Lahore Chamber of Commerce and Industry (LCCI) President Irfan Qaiser Sheikh said if smooth gas supply was not restored, thousands of industrial workers, particularly daily-wage earners, would face retrenchment. “If there is no gas and electricity, how can a industrial unit continue operations.”

Sheikh said it would be difficult for the industry in Punjab, which employs over 15 million people, to meet export orders worth millions of dollars in the face of gas shortage.

“The rise in the number of unemployed will definitely provoke anti-government sentiments and street crimes,” he said and urged the government to immediately shelve the “industry closure plan”.

“How can the industry afford to pay a high mark-up when there is no gas for us,” he asked. He pointed out that globally the industry was given top priority and contrary to that the industry in Pakistan got least importance and other sectors were given priority.

He said around 40 per cent of industrial units in Punjab ran on gas and the supply disruption meant no production by almost half of the industry and loss of millions of rupees worth of revenues to the government. According to Sheikh, the industry was denied gas for 77 days in 2008-09, 100 days in 2009-10 and 160 days in 2010-11.

Published in The Express Tribune, December 28th, 2011.]]>
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			<title>Dark days for fertiliser industry continue</title>
			<link>https://tribune.com.pk/story/312913/dark-days-for-fertiliser-industry-continue</link>
			<comments>https://tribune.com.pk/story/312913/dark-days-for-fertiliser-industry-continue#comments</comments>
			<pubDate>Tue, 27 Dec 11 21:03:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=312913</guid>
			<description>
				<![CDATA[Sales decline 5% on drop in production during January to November 2011.]]>
			</description>
			<content:encoded>
				<![CDATA[Sales of urea, the most widely used fertiliser, declined by 5% in the period from January to November 2011 due to persistent gas outages faced by manufacturers which has led to a drop in production levels.


The four plants which are on the Sui Northern Gas Pipelines Limited network remained the main victims of the chaotic situation due to gas shortage.

The dark days are expected to continue as the government in a new gas load management plan has agreed to cut-off gas supply to the four plants on the SNGPL-based pipeline. The four plants include Engro Corporation’s Enven, Pak-Arab Fertilizer, Agritech Fertilizer and Dawood Hercules Fertilizer.

Similarly, another fertilizer, di-ammonia phosphate (DAP) witnessed a decline in sales by 18% to 1.01 million tons on a yearly basis against 1.24 million tons in the same period last year, according to data released by National Fertiliser Development Centre on Tuesday.

Unavailability and higher prices of both key fertilisers due to black marketing and hoarding can be attributed to the severe plunge witnessed in sales inspite of the low base year due to damage done by the historical floods of last year, said Summit Capital analyst Sarfraz Abbasi.

Among listed urea players, Engro posted a substantial growth in its urea sales of 35% to 1.16 million tons in the first eleven months of 2011 against sales of 0.86 million in the same period last year.

Fauji Fertilizer Company showed a negligible 2% decline in sales during while Fauji Fertilizer Bin Qasim sales fell by 14% on a yearly basis. Dawood Hercules posted the highest decline of 50% to 0.19 million tons on the back of heave outages being faced on the SNGPL-based network.

Urea manufacturers on the SNGPL network were blessed with gas in November as production rose 28% to 435,000 tons on a monthly basis.

Future outlook

The country is currently faced with an acute gap between demand and supply of urea because of persistent gas curtailment and load-shedding, said Abbasi.

Plunge in production poses a severe threat to the yield on crops, resultantly, the country might miss its agriculture-based export targets and also further aggravate inflation in the country which is already higher than the regional peers.

In addition to this, we also believe that lower production in the country will force the government to import more which will eventually put the further burden on import bill, adds Abbasi.

Published in The Express Tribune, December 28th, 2011.]]>
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			<title>All textile units closed as gas supply stops</title>
			<link>https://tribune.com.pk/story/312933/all-textile-units-closed-as-gas-supply-stops</link>
			<comments>https://tribune.com.pk/story/312933/all-textile-units-closed-as-gas-supply-stops#comments</comments>
			<pubDate>Tue, 27 Dec 11 20:56:50 +0500</pubDate>
			<dc:creator>
				<![CDATA[shamsul.islam]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=312933</guid>
			<description>
				<![CDATA[Exporters seek meeting with govt, offer high tariff.]]>
			</description>
			<content:encoded>
				<![CDATA[Gas pressure in Faisalabad industries has dropped to zero, leading to closure of all textile manufacturing units which have got notices of an indefinite suspension of gas supply.


Pakistan Textile Exporters Association Chairman Rana Arif Tauseef, while speaking at a press conference here on Tuesday, said the indefinite gas closure notices came just three days after a meeting between textile exporters and Petroleum Minister Dr Asim Hussain, during which the minister assured them of continuous gas supply for four days a week to export industries.

Faisalabad industries employed more than one million people and if the energy crisis was not resolved, it would be difficult to pay salaries to them, he said. “In the current situation, no industry can survive.”

Textile exporters of the country had invested $17 billion while annual income from textile exports was about $14 billion, he said and added the industry had the potential to earn $25 billion if the energy crisis was resolved, interest rates reduced and law and order improved.

Tauseef sought a meeting between textile exporters and the government to resolve the issue. After residential consumers, he called for giving priority in gas supply to textile exporters and even offered a high gas tariff if uninterrupted supply with full pressure was ensured.

He also suggested that exporters should be separated from the general industry in the gas suspension plan.

Responding to a question, Tauseef said world’s biggest textile fair, Heimtextil, which is organised in Germany every year, is scheduled to be held next month but textile exporters were in a quandary as to how they would honour export commitments if they got sufficient orders.

“If the government does not respond, textile exporters have the option to stop paying gas bills,” he said, adding exporters would make payments to the associations concerned, which would release the money to the gas company if negotiations proved successful. As a mark of protest, the textile exporters later burnt gas bills.

Published in The Express Tribune, December 28th, 2011.]]>
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			<title>Ministry seeks slower pace for new gas connections</title>
			<link>https://tribune.com.pk/story/312858/ministry-seeks-slower-pace-for-new-gas-connections</link>
			<comments>https://tribune.com.pk/story/312858/ministry-seeks-slower-pace-for-new-gas-connections#comments</comments>
			<pubDate>Tue, 27 Dec 11 20:56:26 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=312858</guid>
			<description>
				<![CDATA[Sends request to ECC to change the gas supply policy, cheaper financing of infrastructure for gas companies.]]>
			</description>
			<content:encoded>
				<![CDATA[When in a hole, the first rule is to stop digging. As the gas shortage continues to worsen, the petroleum ministry is moving to reverse the damage caused by the government’s revisions to the gas supply policy, which has put enormous stress on the existing gas supply infrastructure, raised consumer prices and strained the financial position of the state-owned gas supply companies.


Soon after the current administration came into office in 2008, it revised the policy under which new gas connections to towns and villages previously unconnected with the grid would be supplied. This new policy resulted in Rs28 billion in infrastructure spending by Sui Northern Gas Pipelines and Sui Southern Gas Company – about 254% or Rs20 billion higher than what would have occurred under the old policy.

Sources told The Express Tribune that this new policy is one of the main reasons behind the 28% increase in consumer gas prices since the current government came into office.

On Tuesday, the petroleum ministry sent a request to the Economic Coordination Committee (ECC) of the cabinet, asking them to either restore the previous formula, or else provide the gas companies with a soft loan for the entirety of their infrastructure spending, with a 5% interest rate (compared to the 13% market benchmark interest rates.) The request also calls for the spending to be limited to projects that are deemed feasible.

Petroleum Minister Asim Hussain confirmed this report, saying that the existing gas supply policy had proved to be too costly.

The revision of the criteria was done by increasing the amount of money that was deemed to be the maximum feasible cost for a given pipeline project.

The government revised the numbers in 2008. For pipelines of less than 13.5 kilometres, mostly in Punjab and Sindh, the cost was changed from Rs20,000 to Rs54,000. For pipelines of lengths up to 27 kilometres, mainly in Khyber-Pakhtunkhwa, the rate was revised from Rs40,000 to Rs108,000. For pipelines up to 67.5 kilometres in length, laid mainly in Balochistan, the number was increased from Rs100,000 to Rs270,000.

“Following the revised criteria, since 2008 SNGP spent Rs17.2 billion and SSGC spent Rs2.8 billion more than they would have under the old criteria on the supply of gas to new towns and villages,” said one source who wished to remain anonymous.

Since 2008, SNGP has spend Rs24.1 billion, which is 265% more than the Rs6.6 billion it would have had to spend under the old criteria. SSGC has spent Rs4.1 billion, about 215% more than the Rs1.3 billion it would have had to spend.

Once all of these new connections are completed, the total demand for gas has gone up by 709 million cubic feet per day, 694 mmcfd of which is on the SNGP network, which also has the worst problem of gas shortages. SNGP is expected to add on about 1.75 million new consumers while SSGC is expected to add on about 65,280 new users.

SNGP has completed about 40% of the work on 2,900 projects that are expected to cost Rs30 billion. SSGC is further along, having completed 70% of the work on 944 projects, at a total estimated cost of Rs7.8 billion.

The petroleum ministry has said that international financial institutions are willing to finance many of these projects, but at high interest rates of between 14% and 16%.

Published in The Express Tribune, December 28th, 2011.]]>
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