Govt to cut gas supply to fertiliser sector

90mmcfd of gas to be diverted to domestic users.

ISLAMABAD:

To counter the risk of mass protests against the government, with the deteriorating gas supply situation, the Ministry of Petroleum has decided to cut the gas supply to the fertiliser sector by 90 million cubic feet per day. This cut will be immediate and the gas will instead be diverted to domestic consumers.

At present, fertiliser sector is being provided gas by 181 mmcfd that will be reduced to by 50%. The gas load shedding plan will be discussed in a meeting of Economic Coordination Committee (ECC) scheduled to meet today (Thursday). Sources said that ECC was also expected to impose a ban on the import of gas kits and manufacturing of gas cylinders for at least one year.

The ECC is also expected to accord approval to the tax exemption for the imports of material required for developing the infrastructure for the IP, TAPI and LNG gas pipeline. The ECC will also approve the audit of gas usage in the fertiliser sector and low BTU policy.

“For December, four power plants will also not be able to get gas due to diversion of gas to domestic sector,” sources said adding that the crisis had worsened as the ministry of petroleum and natural resources failed to implement the gas load management plan due to stay orders granted by courts.

Dr Asim Hussain Federal Minister for Petroleum and Natural Resources also told that government had planned to reduce the gas supply to fertilizers sector from today (Thursday). He said that gas demand in the country had swelled to 8 billion cubic feet per day whereas the gas supply was 4 bcfd.

Replying to a question, the minister said that IP gas line will be materialized and commissioned before scheduled time and within 2 to 3 days the financial advisor would be appointed for laying the pipeline under IP gas line project. He said that Pak-India talks on transit and transportation fee under TAPI gas line would be initiated and  he would leave for New Dehli in January for talks with India.

Published in The Express Tribune, December 1^st, 2011.