Revised gas outage schedule: Fertiliser gets the better of industrial sector

Cabinet likely to approve gas closure for 4-5 days a week for industries today.


Zafar Bhutta December 07, 2011

ISLAMABAD:


As the government faces pressure from different consumers in Punjab for gas supply, the cabinet scheduled to meet today (Thursday) may approve a revised gas load management plan that would extend gas closure for the industrial sector to four or five days and ensure uninterrupted supply to the fertiliser sector.


Under the revised plan, the petroleum ministry has proposed continuous supply of 180 million cubic feet of gas per day (mmcfd) to the fertiliser sector during the current month, sources say.

However, there would be no gas supply to the fertiliser sector in January due to annual maintenance of gas fields for 60 days.

According to sources, the industrial sector that is already criticising the government would face another setback as its gas outages would increase to four to five days a week due to shortfall of 550 mmcfd on the Sui Northern Gas Pipelines Limited system.

The cabinet may approve the load management plan that has become controversial due to the preferential treatment given to the fertiliser sector, they say.

The cabinet has been asked to continue the existing three-day a week gas outage for the CNG sector.

Earlier, the petroleum ministry had moved a summary to the Economic Coordination Committee (ECC) proposing reduction in gas supply to the fertiliser sector from 180 mmcfd to 90 mmcfd for the ongoing month, however, the top economic decision-making body did not take up the matter due to discussions on some other issues.

ECC had approved a gas load management plan in November to provide gas to the fertiliser sector on rotational basis but the plan was not implemented after Prime Minister Yousaf Raza Gilani directed the petroleum ministry on November 15 to restore gas supply to the fertiliser industry.

It is pertinent to mention that big players of the fertiliser industry made windfall gains of Rs44.72 billion during the first nine months of 2011 in gas curtailment regime against Rs22.57 billion in the corresponding period, a pre-gas curtailment regime.

Power crisis to deepen

The power crisis would escalate as well due to reluctance of the government to provide gas to four power plants having capacity of 900 megawatts and instead provide gas continuously to the fertiliser sector, sources say. Under the revised plan, the government will provide gas to only those independent power producers (IPPs) with which it has contractual obligations.

The power shortages would also deepen consumer woes after water releases from two major reservoirs – Mangla and Tarbela – decline due to closure of canals from December 26.

Indus River System Authority (Irsa) spokesperson Khalid Idrees Rana told The Express Tribune that water releases from Tarbela and Mangla would decline 82% to 10,000 cusecs and 73% to 8,000 cusecs, respectively. At present, Irsa is releasing 58,000 cusecs from Tarbela and 30,000 cusecs from Mangla. Hydel power generation would decline to 500MW against 3,500MW, he said.

IPP Advisory Council (IPPAC) Chairman Abdullah Yousuf said that after the closure of canals, hydropower generation would decline and pressure would build up on thermal power plants.

“Four power plants are closed due to suspension of gas supply that would aggravate the power crisis in the coming days,” he added.

Published in The Express Tribune, December 8th, 2011.

COMMENTS (2)

imran rana | 12 years ago | Reply good move we need to protect agriculture more than industry.
Raj | 12 years ago | Reply

So that means that the nation's economy will come to standstill for 5 days a week!!!!!

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