Plan devised to manage 700mcf gas shortfall

LAHORE - The Sui Northern Gas Pipeline Limited has been asked to devise a new plan of gas load management ahead of severe winter when shortfall of gas is likely to reach the level of around 700-800 million cubic feet, The Nation learnt on Wednesday.


On the government advice, the Ministry of Petroleum and Natural Gas has formulated a new 'Location Policy' to cope with scarcity of natural gas in coming winter according to which the SNGPL would have no option other than to shut the gas supply of a particular area encompassing domestic, commercial and industrial zones instead of adopting the earlier procedure of disconnecting different heavy industrial connections on priority basis, and in this connection a notification is being issued in a couple of weeks, sources in the ministry disclosed to The Nation.


When The Nation contacted Senior Deputy Managing Director of SNGPL Abrar Ahmed, one of the senior most officials in the company who was recently promoted to this position, said the company was usually provided a chunk of 1,860 mcf while the demand reaches around 1,950 mcf in peak season form the normal winter demand of about 1,750 mcf against our availability of almost 1,250mcf, thus creating a shortfall of almost 700 mcf.


He said as this was a routine matter, every year the company has to face the scarcity of gas due to low pressure and additional demand in winter.


According to him, in case of shortfall of gas, we usually cut the supply to industry first and divert it to the domestic users. He said his version did not mean that we totally shut the gas connection, rather we supply the gas on low pressure and in that case small industry continued to use gas.


He said, last year we were criticised by the owners of large-scale industries for gas shutdown. With a view to avoid this harsh criticism, the company might carry out load management by cutting the supply of a particular area or region. After application of this method, heavy industries and CNG stations would remain shut without any priority, however, domestic users would continue to enjoy the uninterrupted supply of gas, he added. And this load management of gas supply might be carried out in all cities and towns turn by turn on equal basis, he further observed.


He said the govt had issued a 'Gas Allocation Policy' in 2005 to both gas utilities, asking them to strictly follow the policy while carrying out the load management of gas.


According to the policy, he said, domestic and commercial users are on the top of priority list, followed by fertilizers companies. While, Processed industry was placed third on priority list, IPPs on fourth, general industry and CNG on fifth, Wapda power plants on seventh and cement on last place in the priority list.


Roughly estimated general industry consumes 400 mcf, CNG 180 mcf, cement sector 50 mcf, power plants 274 mcf and fertilizer companies uses 125 mcf.


It is pointed out pointed out that SNGPL's own compressors also consume gas supply of up to 188 mcf in view of speeding up the running of gas and pushing it up to far-off locations.


It is to be noted that Managing Director Abdur Rashid Lone had said in early Oct that a severe gas supply crunch might hit the country in the coming winter. "Country may suffer shortfall of up to 850 million cubic feet from Dec 2008 to Feb 2009 as use of CNG has been increased besides 2,25,000 new gas connections given to domestic as well as industrial sector," he told a selected group of journalists.


He claimed that the whole industry of Punjab and NWFP could be provided smooth supply of gas if use of geysers and heaters was stopped.


He said that 33 per cent gas was wasted due to substandard machinery and poor appliances. He urged the people to use up-to-date appliances and particularly Chinese equipment, having the capacity of saving gas as country was in dire need of energy.