Meeting today: Energy committee to find ways to overcome power crisis

Body will discuss how to provide more gas and oil to power companies.


Our Correspondent July 04, 2012

ISLAMABAD: As power crisis continues to persist, the cabinet committee on energy in a meeting to be held today (Thursday) will try to find out ways to provide more gas and oil to power companies, which will enable them to enhance electricity production and address consumer woes.

According to a senior government official, the Ministry of Petroleum and Natural Resources had called for supplying 160 million cubic feet per day (mmcfd) of gas in a meeting on energy issues chaired by Prime Minister Raja Pervez Ashraf late last month.

However, the power companies were getting 80 mmcfd due to shortage, he said, adding the energy committee would make efforts to come up with a mechanism to provide more gas and oil to power plants to overcome the energy crisis.

Recently, the Economic Coordination Committee (ECC) of the cabinet endorsed a new gas load management plan, under which power companies would be given more importance. However, in order to improve electricity production, the power producers and oil suppliers need regular payments. The water and power ministry and Pakistan State Oil (PSO) have pressed the government to release funds for the energy chain.

New CNG stations

The energy committee will also discuss a plan to allow the setting up of 200 new compressed natural gas (CNG) stations across the country amid gas shortage.

Earlier, the petroleum ministry had sent a summary to former prime minister Yousaf Raza Gilani, seeking a green signal for new CNG stations that had completed 100% work by February 29.

“The prime minister referred the matter to the energy committee and we have strongly opposed the plan due to the energy crisis,” Petroleum Secretary Ijaz Chaudhry said. If the plan was approved, 200 more CNG stations would be opened that would aggravate the energy crisis, he said.

The Oil and Gas Regulatory Authority (Ogra) has also asked the government to impose a ban on gas supply to new CNG stations for the next three years in a bid to tackle the energy shortages that have hit all sectors of the economy.

Ogra believes that the grant of marketing licences to new CNG stations will spark a big controversy as those who are denied licences will take legal recourse.

Shift from CNG to LPG

The government is mulling over plans to convert CNG stations into liquefied petroleum gas (LPG) outlets to ease gas load and divert the gas allocated to CNG stations to the industry and power companies.

According to a comparison made before the last two revisions in petroleum product prices, a 1,300cc car can run 19 km with 1 kg of LPG, 18 km with 1 kg of CNG and 12 km with 1 litre of petrol.

If the price of LPG is Rs97 per kg, per km cost will be Rs5.10. In case of CNG, per km cost will be Rs4.40 if its price is Rs79.20 per kg. Petrol will cost Rs8.61 per km if its price is Rs103.36 per litre.

Published in The Express Tribune, July 5th, 2012.

COMMENTS (3)

Danish | 11 years ago | Reply

hahahahahaha.. overcoming power crisis...

Hedgefunder | 11 years ago | Reply

There have been too many commitees and meetings over past 5 years to find solutions, however they have not even managed to come up with single idea in that period! So one assumes that it would be safe bet to invite outsiders to show you, how its done, as its obvious that the Country lacks people with know how !

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