No curbs on gas supply to exporters

CCOE makes decision while reviewing gas load management plan

ISLAMABAD:

The government has decided to provide uninterrupted gas supply to the top 50 exporters under the gas load management plan.

However, gas utilities will make supplies to the non-export industry on a weekly rotational basis with one-day off.

This is also part of the gas load management plan approved by the Cabinet Committee on Energy (CCOE) last week.

In the CCOE meeting, the Petroleum Division presented the strategic fundamentals of the Gas Load Management Plan for Winter 2021-22 on which a comprehensive discussion was made.

The Meeting chairman requested Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood to persuade industries to switch over from gas to electricity consumption to cope with gas supply constraints in winter.

At the same time, the Ministry of Energy (Power Division) would assure the industries of uninterrupted power supply.

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The CCOE took up for review a summary submitted by the Petroleum Division titled “Gas Load Management Plan for Winter 2021-22” and decided that gas/ re-gasified liquefied natural gas (RLNG) would be supplied without any interruption to export-oriented industries, including the top 50 exporters, and in addition to the zero-rated industry.

The supply of gas/ RLNG to the captive power plants of export-oriented industries will be monitored till December 15, 2021.

It will be readjusted keeping in view the supply and availability of gas.

The CCOE agreed that compressed natural gas (CNG) stations would remain closed from December 1, 2021, to February 15, 2022.

General industry (non-export) will be provided gas on a weekly rotation basis, with one day off for each sector or zone.

The cement industry will be treated on a par with the non-export general industry. However, uninterrupted gas supply will be ensured to the fertiliser sector in a bid to boost agricultural productivity.

Dedicated consumers of the power sector will also receive uninterrupted gas supply.

Power production based on RLNG will get 5% extra supply during this winter as compared to last year’s actual consumption.

After meeting the gas requirement of critical industries, maximum efforts will be made to accommodate the domestic consumers on priority, as already decided by the Economic Coordination Committee (ECC) of the cabinet.

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The CCOE directed the Petroleum Division to give a presentation on the supply of gas from various sources in the country.

In its summary, the Petroleum Division pointed out that a sustained, secure and affordable supply of energy to the economy was the mandate of the Petroleum Division, Ministry of Energy.

“A winter gas load management plan (Dec-Jan) is proposed every year by Sui gas companies and is implemented by them after approval of the federal government,” it said.

The challenges of managing gas supply to the domestic consumers in winter include enhanced demand vis-à-vis supply constraints and infrastructure limitations.

Owing to home and water heating in winter, the demand for gas goes up. Sui Southern Gas Company’s (SSGC) demand increases from 350 million cubic feet per day (mmcfd) to 500 mmcfd whereas Sui Northern Gas Pipelines Limited’s (SNGPL) demand rises from 550 mmcfd to 1,200 mmcfd.

The government has approved a policy allowing diversion of RLNG on the SNGPL network in winter months from December to February every financial year starting from FY 2018- 19 to address the demand challenges.