Gas supply for Punjab export sector likely to be curtailed

CNG sector to remain closed until Feb 15

ISLAMABAD: Although state-owned gas utilities have been implementing the winter gas load management plan, the government may re-adjust gas supply to export-oriented captive power plants (CPPs) as it scrambles to deal with the gas crisis in the country, Profit learnt on Monday.

In this regard, sources in the textile sector said that the government will most likely cut off gas supply to export-oriented CPPs in Punjab as mentioned in the gas load management plan for December 2021 and January 2022, while those in Sindh will be spared during this winter.

According to the plan, export-oriented industries including the top 50 exporters and zero rated industry will be given uninterrupted Re-gasified Liquefied Natural Gas (RLNG) supply unless there are technical constraints in the system. However, supply to export-oriented CPPs will be monitored till December 15 and might be re-adjusted depending on the availability of gas.

Details also show that the general industry (non-export) will be provided gas on a weekly rotation basis with one day off for each sector or zone, while the cement industry will be treated at par with the general industry although supplies may affect operations later.

Similarly, to boost agricultural productivity, uninterrupted gas supply will be ensured to the fertiliser sector, while Independent Power Producers (IPPs) on a dedicated arrangement of 3000 MW are to get uninterrupted supply, and LNG-based power production units will get 5 per cent extra supply as compared to last year’s actual consumption.

Meanwhile, the compressed natural gas (CNG) sector will remain closed until February 15, 2022.

After meeting national requirements of gas supply for critical industries, maximum efforts will be made to accommodate domestic consumers as already decided by the Economic Coordination Committee (ECC) of the Cabinet, the management plan states.

According to the projected gas demand and supply for this winter, SSGCL will face a shortfall of 246 Million Cubic Feet per Day (MMCFD) in December and 276 MMCFD in January as it will only receive 940 MMCFD of indigenous gas and 75 MMCFD of RLNG during these two months.

Likewise, SNGPL will face a shortfall of 592 MMCFD in December and 772 MMCFD in January as it will be supplied with 886 MMCFD of RLNG in December and 950 MMCFD of RLNG in January and 820 MMCFD of indigenous gas in the two months combined.

On December 8, the Oil and Gas Regulatory Authority (OGRA) had issued a price notification of RLNG for December, stating that eight cargoes of LNG will be imported by Pakistan State Oil (PSO) under long-term agreements whereas two cargoes were being purchased on a spot basis by Pakistan LNG Limited (PLL).

 

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

1 COMMENT

  1. In this regard, sources in the textile sector said that the government will most likely cut off gas supply to export-oriented CPPs in Punjab as mentioned in the gas load management plan for December 2021 and January 2022, while those in Sindh will be spared during this winter.

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