Ministry seeks ECC nod for gas utilities powers

ISLAMABAD - As the gas crisis worsen, Petroleum Ministry has approached Economic Coordination Committee (ECC) requesting to grant discretionary power to gas utilities to manage gas load on its own till gas production is enhanced either through local discoveries or import projects.
Earlier, Cabinet and ECC approved the gas load management plan to implement in peak winter season.
“If the ECC approves the summary then there will be a gas quota system in the country like of LPG and influential industrial sector including textile will be among the beneficiaries, sources said, adding that at present influential textile millers and their captive power plants are also getting gas against the approved load management plan despite the fact that power sector falls in the second priority of approved load management plan.
Even four efficient IPPs though having high efficiency rate in comparison to captive power plants are running on furnace oil and HSD as well due to shortage of gas.
Earlier, the PAC in its last meeting has also raised question over the present gas load management plan where power sector of the country is facing gas shortage while mighty textile millers are getting gas against the approve load management plan and asked the SNGPL to submit details in written in this regard. 
The sources said that Petroleum Ministry had also pleaded the economic body to divert gas from fertilizer to power plants following the decision taken in the National Energy Conference held in April 2012 in Lahore and ensure the priority order approved by economic body which put the power sector on second priority order after domestic consumers.
In the National Energy Conference held on April 2012 in Lahore, it was decided to supply at least 207 million cubic feet per day (mmcfd) additional gas to power plants on system of SNGPL without any guidance as to which sector to be curtailed for arranging the said supply to power sector.
To make available the said volumes, ministry of petroleum had advised SNGPL to supply gas to fertilizer plants on rotational basis and divert the gas thus saved to power plants. “In the backdrop of recent load shedding in power sector, ministry of water and power had requested for more gas supply to power plants on SNGPL system. In the given circumstances, no other option is left except curtailing gas supply to fertilizer plants for diverting the same to power sector,” petroleum ministry says. On SNGPL system, four power plants including Saif, Orient, Halmore and Saif had no gas despite the fact they were most efficient power plants with more than 800MW generation capacity. These plants remain either shut down or operate on expensive diesel fuel.  
“In view of the upcoming Annual Turn Around (ATAs) of major field, ministry of petroleum feels that until domestic gas production is enhanced through new discoveries or the same is supplemented through imports including LNG and trans-national pipelines, gas firms may be allowed to manage gas load on its own while observing following general principles/ priority order including curtailment programme as it is day to day function,” petroleum ministry said.
Ministry has submitted three proposals in summary submitted to economic body. It wants economic body to approve diversion of gas from fertilizer to power sector and redefine the gas priority orders in line with the summary approved in July 2012.
According to that summary approved by economic body, power sector was prioritised over fertilizer sector after domestic sectors, general industrial, fertilizer and captive power have been placed at third category, CNG sector at fourth and cement sector at fifth category.
“Gas utility companies should be allowed to manage gas load on their own according to the approved policy/ priority order,” petroleum ministry added.

ePaper - Nawaiwaqt