Chilly nights: Tough season ahead, says SNGPL managing director

Says demand will soar, causing more shortfall of gas.

LAHORE: Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Arif Hameed has hinted that the coming winter season will affect nearly all consumers of the company as it is likely to face an 80% shortfall in January 2015.

“The circumstances will be tough as the company has added some 0.3 million new domestic consumers to its network, which could peak the demand to 1.6 billion cubic feet (BCF) in January,” said Hameed, while briefing the media in a meeting with the textile industry at the All Pakistan Textile Mills Association (Aptma) house on Tuesday.  “But our total supply will be around 0.9bcf, which is equal to the total demand of domestic consumers.”

SNGPL is set to disconnect gas to the Punjab industry and Compressed Natural Gas (CNG) stations from November 15 for four months. Meanwhile, supply to other sectors may also not be available, as SNGPL’s first priority is to provide gas to domestic, commercial and strategic consumers. SNGPL, after deducting the demand for industries, projected the shortfall. With the biggest loss to Aptma Punjab in the industrial sector, the association has requested the company and other concerned authorities to reconsider the decision to suspend gas.



The suspension will hurt export target by a further $2.5 billion – which has already declined by $1.2 billion– from an annual target of $14 billion for the fiscal year 2014-15.

However, Hameed said that it is nearly impossible for the company to give the industry any assurance as demand this year has increased. He said that SNGPL will try its best to facilitate the textile industry in the manner they did previous year.

The MD added that they are hoping to add Liquefied Natural Gas (LNG) by February 2015. “Around 1.2 bcf of gas will be added to the SNGPL’s network of over 100,000 kilometres, which is around 65% of the total LNG import,” he said.

Although LNG prices have not been fixed by the government, SNGPL is expecting a tariff hike by Oil and Gas Regulatory Authority due to the cost factor of LNG, which would help the company meet its revenue requirements.

“Once imported, our top priority would be Independent Power Producers, in order to streamline the electricity and circular debt issues,” said Hameed.

“We will discuss consequences of closure of gas to textile to Prime Minister Nawaz Sharif, Ishaq Dar and other concerned authorities,” said Aptma Chairman SM Tanveer. “We will also provide solutions so that we can manage to survive in winter.”

Published in The Express Tribune, November 12^th, 2014.

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