Finding a solution: ECC to try and settle gas row between centre, K-P
The federal government, run by the Pakistan Muslim League-Nawaz (PML-N) and the Khyber-Pakhtunkhwa (K-P) administration, led by the Pakistan Tehreek-e-Insaf are engaged in a row over gas supply as the latter has refused to provide the commodity to other parts of the country.
According to sources, the K-P government wants to consume the gas being produced in the province and is not ready to share it with other provinces, whereas the federal government is not committing any supplies to power plants in the province.
The centre has also told the provincial government that it will not bear any risk associated with the power plants because of gas shortage.
“The matter has been placed before the Economic Coordination Committee (ECC) of the cabinet for arriving at a settlement,” a source told The Express Tribune.
Sources said K-P had been consistently asking the Ministry of Petroleum and Natural Resources to allocate 100 million cubic feet of gas per day (mmcfd) for setting up combined-cycle gas turbine (CCGT) power projects in the province under Article 158 of the Constitution.
The article says “the province in which a wellhead of natural gas is situated shall have precedence over other parts of Pakistan in meeting the requirements from the wellhead subject to commitments and obligations as on the commencing day.”
The matter of gas allocation has been raised by the K-P government at various forums. A series of meetings have also been held between the province and the petroleum ministry.
“On all occasions, the ministry has categorically told K-P that no firm gas allocation can be committed in view of scarcity in the system due to the declining reserves,” the source said.
Seasonal demand shift
At present, average gas supply from various sources in K-P is 370 mmcfd against average consumption of 260 mmcfd. Contrary to the summer, the province fully consumes the gas in winter.
Thus, the surplus of 110 mmcfd will only be available in summer months if the demand stays at the existing level, which is remotely possible.
According to the sources, the petroleum ministry and K-P will try to settle the matter before the ECC, keeping in view the sanctity of Article 158 and commitments from higher offices.
The ministry proposes that the gas produced in K-P may be earmarked to the province for setting up CCGT power projects subject to the condition that 50 mmcfd may be allocated from January 1, 2016 and an additional 50 mmcfd from January 1, 2018.
The power projects will be dual-fuel based and the supplies will be subject to gas load management. All risks and costs associated with the setting up of power plants will be borne by the K-P government. The province will also complete a bankable feasibility study, land acquisition, regulatory approvals, financial close and engineering, procurement and construction (EPC) tender process.
Published in The Express Tribune, November 29th, 2014.
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@abbasi You shud update your information brother. Our hydel geneartion is too small to cater for even half the Peak demand in summers. IPPs work year-round. Most of them have been working year round since the time they were built. If u have any doubts, plz read financial or annual reports of HUBCO, KAPCO, PKGP, etc. Actually hydel shortage is so much that even gas production can't meet it. Most of the IPPs have to run on RFO (residual furnance oil) or Diesel to run them.
@Waseem: The clamoring and blaming so called Punjabi establishment is now old. Try something else this time. This black mailing should be over as Punjabis are blamed for your own short comings as they are easy scape goats. PTI is using Racist rhetoric in KP but in Punjab they are Pure Pakistanis only. ? PTI should end this double standards.
Also you are absolutely wrong regarding to the Power production. When did KP established any dam?. When the KP did financed any dam?. Which dam infrastructure belong to you? According to your logic if some person from Sindh or Punjab will develop some industry or construct the home in KP then this will automatically belong to a Pushtoon as it is in KP so the original owner does not matter ?
Power Producing dams were not built by Provincial governments rather they were built by the Federal government. The dams dont belong to the provincial governments. After the 18th amendment now you are paid enough of Royalty and still KP have the highest lines losses in the whole of Pakistan. Punjab and Sindh contribute more than 90 percent of GDP of Pakistan and they are bailing the KP line losses for a longer time now and they are even paying for the line losses of more than 30 percent and still people of KP are not satisfied ?.
@Chachoo: Yes and the same goes for electricity also. the problem is that punjab is the consumer while all other provinces are net producers of energy and power. while kp is spending on hydro plants punjab is spending on metro buses instead of spending on producing electricity and then it wants that electricity for itself. And regarding cng shortage that is not the problem of kpk or sindh. they are producing gas why should they give up their right when on the other hand punjab does not allow kpk to buy wheat from punjab and instead asks it to go to central government and buy it from them after its own needs are fulfilled. and regarding the real estate. what will be that real estate when you do not have energy sources and instead you are installing nandipur type projects to make commission. why should kpk bear the cost of imprudent and costly decisions of punabi establishment.
If there would a be government in Pakistan, I suggest that government that it should create sister towns and villages in Pakistan and then lease land to people so that people of warm areas spend their summers in hilly areas and people of hill areas spend their winter in plain areas. Pakistan can save 30 %energy bill in this way and a local tourism will take its roots. It is just a dream another interesting example of dystopian flash fiction.
@AB: Gas plants are intended for use in the winter months when Hydal projects do not produce electricity due to restricted water flow/freezing temperatures through the colder months..
That's just great.On container, IK will make 350 small dams and give electricity @Rs2/Unit. And in the real world u wanna install a gas power plant at a time when most of the gas plants, industry and CNG r closed all over the country becuz of shortage of gas. I m sure some IK mureeds will try to manufacture perverted logics for it. So plz go on, ur time starts now.
Imran Khan led PTI is fanning provincialism while his all party members are enjoying in Punjab. According to the Incumbent KP government The sugarcane, wheat, rice, vegetables and The Real State of Punjab belong to the whole of Pakistan but other resources only belong to themselves other than Punjab. This is not how things work. If Gas of KP will not be shared with the Center then in the future this should apply to Agriculture, Dairy Products and Real State of Punjab as well..