Winter woes: PC warns against complete shutdown of CNG stations

Commission underlines need for meeting requirement of fertiliser industry.

ISLAMABAD:

With a warning that a halt of gas supply to compressed natural gas (CNG) filling stations may disturb law and order and lead to increase in consumer goods prices, the Planning Commission has opposed a complete shutdown of CNG stations in winter and called for providing them supply for two days a week.

In another proposal, the PC has suggested that gas could be provided to the filling stations at daytime when demand for gas is comparatively lower.

In its comments on the proposed gas load management plan, the PC asked the Ministry of Petroleum and Natural Resources to seek the input of provinces and submit a summary to the Council of Common Interests (CCI), sources say.

The ministry has already sent the plan to the prime minister for approval in an attempt to press on with the programme in the current winter season.



Citing reasons, according to the sources, the PC said private investors and consumers had made a huge investment in the CNG sector and thousands of people were associated with it. A complete shutdown from December to February would disturb law and order, increase unemployment, spark increase in prices of consumer goods and lead to destruction of the CNG sector, it cautioned.

“It is proposed that the existing five-day holiday in a week may be continued, nonetheless, operation of CNG stations may be restricted during daytime when demand from domestic and commercial sectors is low,” the commission said.

According to PC’s assessment, CNG stations consume 2.784 million tons of oil equivalent (MTOE) natural gas, of which Punjab uses 53% (1.476 MTOE).

“Motor spirit (petrol), the only direct substitute for CNG, has limited supplies, therefore, such a policy decision must be supported by a backup plan to meet the expected demand,” it suggested.

Fertiliser, power plants

Turning to the fertiliser industry, the PC said that keeping in view the agriculture size of the country and significance of fertiliser in crop cultivation, the gas load management plan could be designed in such a way that fertiliser requirements for the Kharif sowing season could be met.

“Power generation is the least efficient gas consuming sector, therefore, power plants with higher heat efficiency may be provided gas and the rest should be encouraged to increase efficiency to get gas allocation,” it added.

“Gas demand in northern parts of the country increases manifold, therefore, (needs of) the domestic sector in these high-cold areas may be addressed on a priority basis.”

The commission described the steps taken by gas distributing companies to conserve gas as very poor. “These companies may be asked to chalk out strategies coupled with incentives and disincentives to promote gas conservation across the board,” it said.

Domestic and commercial consumers use about one-fourth of natural gas with 20.3% and 3.1% share respectively. Gas distributing companies – Sui Northern Gas Pipelines and Sui Southern Gas Company – can add a sufficient amount of natural gas to the system if conservation policies and schemes are implemented in letter and spirit.

The commission asked the petroleum ministry that it could ensure supply of gas from various fields without any failure and with maximum production.

Published in The Express Tribune, December 10^th, 2013.

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