Meeting of Senate Standing Committee on Water and Power
13 July, 2012
ISLAMABAD: Secretary Petroleum Dr Waqar Masood Khan on Thursday informed the Senate Standing Committee on Water and Power that it has plans to cut off fertilizer sector gas supply from the system and to allocate dormant gas filed to the fertilizer industry for supply of gas permanently.
ISLAMABAD: Secretary Petroleum Dr Waqar Masood Khan on Thursday informed the Senate Standing Committee on Water and Power that it has plans to cut off fertilizer sector gas supply from the system and to allocate dormant gas filed to the fertilizer industry for supply of gas permanently.
The gas to be saved from fertilizer sector would be provided to power sector to overcome load shedding and power crisis in the country.
The government would also start supplying 120 MMcfd gas to the power sector from today (Friday) that would add 600 megawatt (MW) electricity in the system to minimise demand-supply gap. To meet the growing gas shortfall in coming winter season, the government is working on import of 250 MMcfd LPG as well as is in negotiations for import of 800 MMcfd LNG of the total LNG import plan of 1 billion cubic feet BCF.
Supply to fertilizer sector has been stopped and fertilizer needs to be met through imports and available gas to be provided to power sector for reducing load shedding hours. The government has plans to offer dormant gas fields for development to fertilizer sector so as to switch them from national gas system to dormant gas filed gas source permanently.
Dr Waqar Masood on provision of gas supply to the power sector said that total gas supply to be increased from 83 MMcfd to 120 MMcfd for the power sector from today and total gas availability would reach 436 MMcfd to increase power generation through gas from 400 MW to 600MW electricity in the system. He said additional gas supply of 82 MMcfd to the power sector would be added another 38MMcfd from today after the completion of Annual-Turn-Around (ATA) of Bandali plant.
This would increase the total dedicated and undedicated gas supply to the power sector to 426 MMcfd. The committee meeting chaired by Senator Zahid Kahn received briefing from all the stakeholders on overall electricity situation in the country was also informed electricity shortfall was worsened in the country recently because of massive decline in average fuel supply to the power sector.
Zafar Mehmood said daily fuel supply to the power sector was plummeted to 14310 metric tonnes against 2800 metric tonnes required daily and consequently drop in power generation led to widening of demand-supply gap and increase in load shedding in the country.
He said situation started improving after Prime Minister directed the Ministry of Petroleum to increase fuel supply to the power sector. The Standing Committee directed high ups of Sui Northern Gas Supply to seal any CNG station does not matter who it is belonged to if caught in supplying gas during three days gas load shedding of CNG.
In reply to a question of the committee member, Petroleum Secretary said supply of 120 MMcfd gas to the power sector would add 600 MW in the system.
He informed the Committee about yawning gap between demand and supply of gas as well as about the need to explore short term to meet the short term requirements. He said the total gas production or availability stood at 4.2 billion cubic feet against the controlled demand of 6.2 billion cubic feet and the country would require 8.2 billion cubic feet gas to cater to the demand of all the sectors. Traditional sources of gas production are very nominal and there is urgent need to work of short term projects to meet the immediate requirement of the country, he added.
He said IP and TAPI were long term projects that would start giving results after 2016 onward and immediate option was import of LPG or LNG. He said the government was working on import of 250 MMcfd LPG as well as is in negotiations for import of 800 MMcfd LNG of the total LNG import plan of 1 billion cubic feet BCF.
He said government has suspended supply of gas supply to the fertilizer sector for providing gas to the power sector and would import fertilizer to meet the requirements of the country. He said government imported last year 1.2 million ton fertilizer and provided at cheaper rate to the agriculture sector through provision a subsidy of Rs 55 billion. He aid decision to suspend gas supply to fertilizer sector was taken after careful consideration.
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