Gas firms to curtail supply to CNG stations, industry

Domestic, export-oriented industrial consumers will face no disruption in winter

Our Correspondent November 27, 2020
The Senate agreed that natural gas would not be provided to high-rise buildings and new housing schemes through the Sui gas transmission system. PHOTO: REUTERS


The Cabinet Committee on Energy (CCOE) was informed on Thursday that gas utilities would curtail supply to compressed natural gas (CNG) stations, general industry and captive power plants.

However, it was clarified that gas supply would only be curtailed to those general industrial units and captive power plants, which were not export-focused.

A meeting of the cabinet committee was held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar.

It was informed that in order to meet demand from high priority sectors, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) would curtail gas supply to CNG stations, general industry (non-export) and captive power plants (non-export). Supply to those export-oriented captive power plants, which were connected to the power grid and could meet their power generation requirement, would be curtailed as well.

The CCOE discussed a summary prepared by the Petroleum Division on natural gas load management in winter 2020-21. In a presentation on demand and supply of natural gas in winter, the committee was informed that domestic and export-oriented industrial consumers would face no disruption during the season.

The committee directed the energy ministry to ensure priority to residential and industrial demand during winter months, without any load curtailment. It was informed that the Power Division would explore possibility of further reduction in regasified liquefied natural gas (RLNG) offtake in December 2020 and January 2021 and it would not impose penalties/ liquidated damages on non-supply of RLNG by SNGPL.

Efforts would be made by SSGC for the transportation of additional gas volumes to SNGPL. The Petroleum Division presented mitigation measures for arranging additional gas supply in the winter season. Furthermore, an optimum utilisation plan for RLNG was presented.

The CCOE directed the Petroleum Division to present an energy efficiency programme for domestic natural gas appliances. It also urged the division to check gas theft done through illegal use of compressors in the residential and commercial sectors.

It approved a proposal of the Power Division for the ratification of memorandums of understanding (MoUs) signed with the independent power producers (IPPs).

The Power Division would continue to pursue agreements, based on the MoUs, through the committee constituted for the purpose.

Published in The Express Tribune, November 27th, 2020.

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