The Ministry of Petroleum and Natural Resources has diverted 150mmcfd to four efficient power plants, a step taken to improve power production and ensure its uninterrupted supply on the day elections are going to be held. PHOTO: FILE
The Ministry of Petroleum and Natural Resources has cut off gas supply to several inefficient captive power plants of industrial units and diverted 150 million cubic feet of gas per day (mmcfd) to four efficient power plants, a step taken to improve power production and ensure its uninterrupted supply on the day elections are going to be held.
Announcing this at a press conference on Thursday, Petroleum and Natural Resources Minister Sohail Wajahat Siddiqui said the increase in gas supply to power plants – Saif, Halmore, Orient and Sapphire – boosted electricity production by 800 megawatts.
“This will save $3 million per month (on account of reduced oil purchases),” he said, as power plants were being provided 19,000 tons of oil per day compared to normal supply of 16,000 tons to help them operate at optimum capacity.
The government is trying to make sure that Kot Addu Power Company (Kapco) and Hub Power Company (Hubco) get the required fuel and oil is also being provided on credit to the plants that are required to pay cash in order to increase electricity generation.
On the other side, Sui Northern Gas Pipelines Limited (SNGPL) has stopped gas supply and slapped a fine on the captive power plants that were inefficient or involved in gas theft. Cases have also been filed against those involved in stealing gas.
“Owing to reduction in gas supply to captive power plants, we have been able to provide 150 mmcfd of gas to the most efficient power plants,” Siddiqui said.
He stressed that measures had been taken in consultation with provinces and the interior ministry to avert security threat and ensure smooth oil and gas supply to power plants on May 11, the day elections will be held. Gas supply to compressed natural gas stations will also not be suspended on that day.
In an effort to improve recoveries, he said, Sui Southern Gas Company (SSGC) also stopped gas supply to Karachi Electric Supply Company (KESC) and Pakistan Steel Mills on credit and sent disconnection notices to them if they failed to clear the dues.
KESC has to pay Rs27 billion for gas consumption and Rs13 billion interest. Steel mill will see its gas supply curtailed if it could not clear its unpaid bills by May 27.
Siddiqui said the government had constituted a vigilance committee to improve performance of gas companies and address grievances of consumers. The government has also asked SNGPL to make the list of defaulters public.
Responding to a question, Siddiqui said the prime minister (not him) had removed the managing director of Oil and Gas Development Company and termed the allegations levelled by the former MD baseless.
Published in The Express Tribune, May 10th, 2013.
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Industry should buy their fuel directly from sources to avoid gas disconnection problems.