Plan to supply gas thrice a day rolled back

ISLAMABD:

The Cabinet Committee on Energy (CCoE) on Thursday turned down a plan to provide gas to domestic consumers three times a day.

During its last meeting, the cabinet body had discussed a proposal of providing gas three times a day to households for cooking.

However, the CCoE backed out of the plan in its latest meeting.

The participants of the meeting, chaired by Federal Planning and Development Minister Asad Umar, said they had only stressed the need for providing gas to domestic consumers three times a day for cooking.

They clarified that they had never asked to stop gas supply for the remaining time of the day.

During the meeting, the Petroleum Division presented the projected natural gas supply and demand position in the country for the coming winter.

It presented a detailed impact analysis of different policy options for the management of gas demand during the winter 2021-22.

It was informed in the meeting that the enhanced demand of domestic consumers was to be met through savings from captive power generation.

Read: Two months gas suspension to CNG stations, other sectors approved

A “prudent” pressure management plan would also be developed to ensure the stable supply of gas to the consumers. Gas supply to CNG stations would be curtailed during winters.

Industrial activity would be in focus in the gas management plan, especially the export industry.

The CCoE approved the demand side of the proposals submitted by the Petroleum Division.

It was further directed that the CCoE would consider the supply side proposals in the next meeting.

The cabinet body on industry suggested providing gas to the general industry on a rotational basis.

However, it further said that gas utilities could suspend gas supply to the general industry in case of an increase in demand.

Sources said that it was informed during the meeting that the energy ministry would hold a meeting with the All Pakistan Textile Mills Association.

The government would ask textile millers to reduce gas consumption and enhance supply of electricity for two months in a bid to overcome the crisis.

The cabinet body members stressed on enhancing gas supply during winter seasons.

The Pakistan LNG Limited was to place orders for two more ships to enhance gas supply. However, it had not placed the orders so far because of higher gas prices in the global market.

The sources said gas supply to dedicated consumers, which included power and fertiliser sectors on independent system, would remain stable.

Power plants on the Sui Northern Gas Pipelines Limited (SNGPL) network would be provided regasified liquefied natural gas (RLNG) as per the actual consumption of the winter of the financial year 2021 with 5% more supplies. Any deficit would be recouped through furnace oil.

Fertiliser plants on Sui Southern Gas Company Limited (SSGCL) and SNGPL networks would operate uninterruptible.

Any gas saved from captive power plants because of switching to power grid would be supplied to the export industry.

During the meeting, it was informed that indigenous gas reservoirs of the country were depleting fast and their availability in future might not be sustainable.

It was further informed that after meeting the demand of domestic users, power sector, fertiliser plants and the export industry, there was hardly any supply left for the rest of the consumers.

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The CCoE also considered the summary presented by the Maritime Affairs Division on the construction of an oil storage area in Keamari, Karachi.

The meeting was informed that insufficient storage infrastructure at the ports created a bottleneck in the supply chain and resulted in increased costs.

To compressively review the situation and available options, the CCoE formed a sub-committee under SAPM on CPEC Khalid Mansoor. They body included the member of the Energy Planning Commission as well the petroleum and power secretaries. The sub-committee will submit its proposals to the CCoE within two weeks.

The committee also reviewed the monthly report submitted by the Power Division on the out-of-merit power plant operations due to network constraints. The committee was assured that a constraint removal plan for the encountered issues was already under implementation.

The meeting was attended by the ministers for finance, energy, maritime affairs, science and technology, railways, adviser to PM on commerce and Industries, SAPM on CPEC, Oil and  Gas Regulatory Authority (Ogra) chairman,  National Electric Power Regulatory Authority (Nepra) Chairman as well as representatives of other regulatory authorities and senior officials of ministries and divisions.