Gas supply to industries increased to five days a week

Minister hints at rise in gas prices, but not in near future.

LAHORE:

Federal Petroleum and Natural Resources Minister Asim Hussain, following months of persistent demand from businessmen of Punjab, has announced that industries will now be provided with gas continuously for five days a week. Earlier, the industries were getting gas for three days a week.

At the same time, Hussain also hinted at a possible increase in gas prices in the wake of a rise in the international market, but not in the near future. “The government is in no mood to increase gas prices for at least a year,” he said.

Hussain, in a telephonic conversation with office-bearers of the All Pakistan Textile Mills Association (Aptma), said if things got normal and synthetic natural gas was added to the system in the next few months, “we will increase gas supply to seven days a week for the industries.”

“All fertiliser plants are now working and the industry will be provided gas for five days. Now we are concentrating on power plants and will try to supply some gas to independent power producers (IPPs) this month so that electricity shortage can decrease,” he added.

In a bid to boost gas supply, Pakistan Petroleum Limited (PPL) has started working on exploration of shale gas reserves and is also making efforts to find new reserves. “I believe that PPL has a huge potential and soon we will hear some good news,” Hussain said.

On the other hand, Oil and Gas Development Company (OGDC) will begin work in a few months on its reservoirs in Balochistan and Punjab.

“The situation is going towards betterment and I hope that this year will not be as tough as the previous one,” he said.

So far, gas supply has increased by 215 million cubic feet per day (mmcfd).

Gas companies gave too many domestic connections this year and this load would increase in future. Also, CNG consumption would rise due to recent hike in petroleum product prices, he pointed out.

Keeping in view all such possibilities, Hussain said, the government had prepared short, medium and long-term plans for gas consumers.

Talking about Iran-Pakistan gas pipeline, Hussain said Pakistan would definitely go for the project, adding the project was planned before the imposition of sanctions on Iran, therefore those curbs were not applied to the project. “We are in contact with some foreign lawyers to present our case.”

Praising the increase in gas supply, Aptma leader Gohar Ijaz was of the view that the industries, which had lost 30% of capacity due to energy crisis, would be able to increase exports and create jobs.

Published in The Express Tribune, March 23^rd, 2012.