No gas for commercial consumers in winter, says Shahid Khaqan

ISLAMABAD: The government has ‘rung the warning bell’ saying that the commercial gas consumers, including fertilizers and industries will spend the upcoming winter season without natural gas, as supply in the system has been alarmingly reduced by almost one-fifth.
However, in Punjab zone there will be no such interruption, as the CNG stations are fed through imported Re-Liquefied Natural Gas (RLNG).
“In winter there will be around 550 million cubic feet (mcf) shortage of gas; however we will ensure gas supply to the domestic consumer. Industrial units, gas stations and other commercial companies will not get the gas in the season,” Federal Minister for Petroleum & Natural Resources Shahid Khaqan Abbasi said this while briefing journalists regarding the recent allegations of the Sindh government regarding reduction in the natural gas share of the province. The minister termed the Sindh government’s blame as ‘baseless’ saying their share has increased instead over the time. At the time of the 18th amendment, there was 2900 million cubic feet gas available in the country, in which 1700 mcf was distributed through Sui Northern Gas Pipeline Ltd (SNGPL) while 1200 mmcfd through Sui Southern Gas Company Limited (SSGCL). Now, the share of SSGC is 1250 ccf while 1150ccf is through the SNGPL.
There is no swapping arrangement of natural gas produced in Sindh with imported LNG. However, the RLNG is mingled with natural gas and transported to the consumers. This blame has been put on the central government just to get a ‘political mileage’.
Yes, Karachi is supplied with the RLNG, and it has no impact on other parts of the Sindh province. He also said that the LNG is an imported item and it cannot be brought under the Council of Common Interests (CCI), what the Sindh province is demanding. However, in some areas there is swap arrangement that will get abolished in the next month November.
“We are working under the LNG policy, which the PPP government had promulgated in 2011,” he said.
The minister also rejected the Sindh government claim that the federal government is avoiding the development of Thar coal and claimed that the Center has more share in the development of Thar Coal project than the provincial government. A big share under the China-Pakistan Economic Corridor (CPEC) has been allocated for the project related to Thar coal, he added.
Thar coal is very important but is not the only source of energy as besides Thar, Iran-Pakistan Gas Pipeline, Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline are also under government’s plan and it will give a ‘low cost energy mix’. Abbasi informed that groundbreaking of the TAPI is expected in December 2015.
The minister also said that the government was taking up a summary with the CCI, asking for granting authority to the federal government to regulate LPG margins and producer price.
To a question that whether the Sindh government can disrupt gas supply to the SNGPL, the minister said gas comes to the system from Sindh, Balochistan, Khyber Pakhtunkhwa and Punjab. “A sensible government will never act like that.”
Regarding Nandipur Power Project, Abbasi said that its PC-I has been revised at Rs58 billion, but claimed that they are cleaning the mess created by the PPP government. He said the issue is not with the project or turbines; the problem is with the fuel plant or furnace oil treatment plant. It is a light gas turbine, as it was tried to run on Heavy Furnace Oil (HFO), which is not possible to sustain. Once the gas supply starts to it, it will fully start functioning. “I think there is no corruption involved in the project, it is only mismanagement and negligence which has created problem,” the minister added.
He also questioned the board of directors of the SNGPL, as there is conflict of interests’ issue. Some members of the board are getting millions of rupees fee from the utility and some cases cross 200 million rupees.