Expanding sources: Shale gas reserves to add 500mmcfd into system

New gas discoveries in Sindh to be unveiled in 10 days, says Hussain.

LAHORE:

Petroleum and Natural Resources Minister Dr Asim Hussain has announced that 500 million cubic feet per day, recovered from shale gas reserves, will be fed into the energy network in the next two years as $2 million have already been spent on the project.

Speaking to members of the All Pakistan Textile Mills Association (Aptma) at its Punjab office here on Saturday, he kept the nation guessing, by saying “good news about new gas discoveries in Sindh will be shared in the next 10 days.”

He dispelled the impression that industry in Punjab was being neglected by the government and said Punjab had a major share of the industry and no one wanted to damage them.

Referring to fears of a 90-day gas suspension in winter, Hussain assured the textile industry of uninterrupted supply for four days a week in winter, which may be enhanced to five days with supply of an additional 200 mmcfd sooner rather than later. “Shortage of gas will end in about one and a half years.”

He said he was reassessing gas reserves of Punjab and expressed the hope it would have much more gas resources waiting to be explored. “Punjab is producing only 5 per cent of total gas consumed” with production of 29 mmcfd against the potential for 79 mmcfd.

He said a number of measures including gas infrastructure surcharge, gas theft act, levy on liquefied petroleum gas (LPG) production and end to price distortion had been taken to streamline gas supply to consumers, particularly the textile industry.

Hussain pointed out that compressed natural gas (CNG) outlets were consuming gas share of the textile ministry and termed CNG stations a burden on industrial growth. In winter, gas supply to CNG outlets would be stopped for three days a week and price distortion would be checked as CNG was being sold at discounted rates in many areas, he added.

Talking about liquefied natural gas (LNG), he said it would become an alternative source and would become cheaper if sales tax was exempted, adding work on an LNG pipeline from Karachi to Lahore would start soon.

Earlier, Aptma Chairman Mohsin Aziz highlighted the role of textile industry in the economy and said Punjab was home to 60% of textile industry and any gas curtailment would trigger unemployment and socio-economic problems.

Pakistan Textile Exporters Association Chairman Rana Arif Tauseef proposed gas supply to textile processing units on quota basis to run generators on gas. Under the plan, he said, these units would run their boilers on alternative fuel during the winter gas load management programme.

Published in The Express Tribune, November 6^th, 2011.