Energy woes: Gas company warns of drastic steps if Engro wins case

Supply may be cut either to residential consumers or defence institutions.

Sui Northern Gas Pipelines Limited (SNGPL) will have to consider curtailing gas supply either to residential consumers or national defence institutions if the Sindh High Court rules in favour of Engro Fertilizers and orders supply of 100 million cubic feet per day to its new plant, says SNGPL General Manager Sales Rehan Nawaz.

Talking to The Express Tribune, Nawaz said a hearing in the case would be held today (Thursday) and the court might give a decision.

“The court has already directed us to provide gas to Engro Fertilizers, but we are currently not supplying to the company and have also explained to the court the shortage being faced by the utility,” he said.

Engro filed a petition in the Sindh High Court last year against curtailment of gas supply to its fertiliser plant. As the plant is situated in Deharki, Sindh, the management under Article 158 of the Constitution claimed that as Sindh accounted for around 70 per cent of gas produced in the country, it was the company’s right to receive continuous supply.

SNGPL, which covers Punjab and Khyber-Pakhtunkhwa provinces, supplied gas to Engro from the Qadirpur field, which despite being in Ghotki (Sindh) had been allocated to the gas utility.

SNGPL serves four fertiliser plants including Engro Fertilizers, which consumes 100 mmcfd of gas, Pak Arab Fertilisers, which gets 62 mmcfd, Dawood Hercules Fertilisers, which receives 49 mmcfd and Pak American Fertilisers, which consumes 28 mmcfd. Gas supply to all these plants has been curtailed as per load management schedule.

“We are hopeful to get some relief from the court, but if Engro wins, then we will have to resume supply of 75 mmcfd immediately. The volume will be increased to 100 mmcfd after January 31,” Nawaz said.

This additional load would definitely affect the residential consumers as the gas company was currently facing a supply-demand gap of around 850 mmcfd, he said. “SNGPL will either curtail supply to national defence institutions, which are receiving 100 mmcfd, or reduce gas pressure in some cities.”

Nawaz said technically it was not possible to completely stop gas supply to cities because if pipelines ran out of gas and oxygen started replacing gas, it would cause high risk of explosion.

“In such a case, the company will have to first clear gasses like carbon dioxide in the pipelines and then release natural gas,” he added.

Published in The Express Tribune, January 19^th, 2012.