Disaster alert: January to be month of ‘gas emergency’

Gas supply to CNG stations and industry may be cut across the country.

GUJAR KHAN:

Federal Minister for Petroleum and Natural Resources Dr Asim Hussain has said January will be the month of “gas emergency” in the country.

Talking to the media during a visit to the Adhi field of Pakistan Petroleum Limited (PPL) here on Thursday, Hussain said no final decision had been taken about the month-long closure of compressed natural gas (CNG) stations in Sindh.

However, he said the government might cut gas supply to CNG stations and industry across the country in January due to widening gap between supply and demand of gas. “Though no decision has been taken, the government may decide to cut gas supply to CNG stations and industry for one month due to rising gas shortfall of over one billion cubic feet per day.”

Saying that the government’s first priority would be to meet the demand of domestic consumers, he added CNG dealers were misleading people, as there was little gas available in the country.

“I saw 40-50 CNG stations on my way to this field. Many of them sold gas at a discount. That’s possible only if the CNG station reduces its profit margin or steals gas.” He said CNG stations were getting gas at the rate of Rs28 per kg.

Replying to a question about the proposed hike in gas prices, Hussain said the increase would be in line with the mutually agreed formula for the CNG price, which fixed it at 55% of the petrol price. “Nothing is free. If they’re that sincere, they should reduce their profit margin. No one should play politics over the gas issue.”

He said it was time that all distortions in the oil and gas sector were fixed. “Ogra (Oil and Gas Regulatory Authority) will decide whether to increase the gas price. I can’t say for sure, but the likelihood is that prices will increase.”

Shares distributed among employees

Hussain distributed Benazir Employees Stock Option Scheme (Besos) certificates among 123 employees of Pakistan Petroleum Limited (PPL) as part of the government’s scheme to make employees shareholders in state-owned companies.

Speaking to the PPL management and workers, the minister said the Adhi field was on a par with any international gas field in terms of facilities and practices. He said it was a welcome news that the liquefied petroleum gas (LPG) plant at the field was now being run at optimum capacity.

About 70 kilometres south of Islamabad, Adhi field is being operated by PPL while Oil and Gas Development Company and Pakistan Oilfields are joint-venture partners. Average daily LPG production from the field is about 125 tons.

Speaking on the occasion, MNA Raja Pervez Ashraf said people who provided oil and gas companies with their ancestral land must be compensated. He said these companies should set aside job quotas for local people.

On the request of Ashraf, the petroleum minister announced a bonus equivalent to one-month salary for all PPL employees working at the Adhi field.

Published in The Express Tribune, December 30^th, 2011.