Back to square one: Cabinet rejects gas load management plan

Petroleum Ministry asked to take all stakeholders on board and submit a revised arrangement.

ISLAMABAD:

The Cabinet, on Thursday, rejected the gas load management programme for the ongoing month of December that proposed gas load-shedding in Punjab and Sindh while exempting Khyber-Pakhtunkhwa (K-P) and Baluchistan, due to constitutional constraints.

“While the Ministry of Petroleum is under pressure to implement a load management plan - due to stay orders and gas supply to fertiliser sector on preferential basis - some ministers termed the load management plan as half-baked in the cabinet meeting,” sources said.

The cabinet further directed the Ministry of Petroleum to prepare a revised gas load management plan by taking all stakeholders on board and then resubmit it for approval. When contacted, Secretary Petroleum, Ijaz Chaudhry confirmed this.

Since the government cannot cut supply to gas-producing provinces, Sindh, Baluchistan and K-P, only Punjab will be facing the highest share of gas load shedding.

The Ministry of Petroleum had also tabled a proposed gas load management plan for both gas utilities, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC), which was not approved.

Ministry of Petroleum, in its presentation, informed the cabinet that SNGPL had no intention to exercise gas load management in K-P in view of the orders of the Peshawar High Court.

However, the ministry said, SSGC intends to oversee gas load shedding in Sindh despite a similar order of Sindh High Court to adhere to article -158 of the constitution of Pakistan. “SSGC’s proposed plan may attract contempt of court,” it said in the presentation.

Under the proposed load management programme for SNGPL, the Cabinet was asked to approve the gas supply of 180 million cubic feet per day (mmcfd) gas to four fertiliser plants till December 31, in order to mitigate urea shortage.

“This is possible only if gas supply to industries is disconnected,” an official said. The plants will go on the Annual Turn Around (ATA) of 60 days thereafter, he added.

During the meeting, it was further proposed to continue normal gas supply to domestic and commercial sectors and continue the 3-day weekly holiday CNG stations. However, CNG stations located in Islamabad Capital Territory were to be exempted from gas holidays until the stay order issued by Islamabad High Court is vacated.

Industrial sectors with a nine-month contract were to switch over to alternative fuel during peak winter months, under the plan. At the same time gas supply commitment with the power sector under valid gas sales agreement was to be honoured under the plan.

Under the load management plan for SSGC, the CNG sector in Karachi and interior Sindh were suggested to close for two days a week. Moreover, Pak Steel is to be supplied gas as per its allocation of 29 mmcfd. Captive power plants and general industry were proposed to remain closed on every Sunday.

Furthermore, KESC is to be supplied 150 mmcfd from December 2011 to February 2012 and 160 mmcfd in March 2012 against their demand of 236 mmcfd. SSGC will not observe gas curtailment in Balochistan, it was further suggested.

Published in The Express Tribune, December 9th, 2011.