Business Recorder-----------------------------------------------------------------October 19, 2011
Managing Director Sui Northern Gas Pipeline Limited (SNGPL) Arif Hameed has warned of a gradual but severe gas shortage in upcoming winter. The shortfall is expected to increase from 390 mmcf in October to 500 mmcf in November, 550 mmcf in December and could touch its historic peak of 840 mmcf in January 2012.
Addressing a gathering of businessmen and industrialists at the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday, Hameed also announced reduction of gas loadshedding for the industry from weekly three-day to two-day after 22nd October.
He also ruled out the possibility of unscheduled loadshedding in the future and said a massive gas loadshedding awaits industrial consumers in Punjab this winter, as province faces a severe gas deficit at the moment. SNGPL is going to launch LPG air mix for Kot Lakhpat industrial area on experimental basis, which would be spread to other areas following its success.
About the Pakistan-Iran gas pipeline project, the Managing Director SNGPL made it clear that it would not be able to fulfil requirements. "We will have to rely on LNG to overcome the shortfall. He said that to ensure supply of gas to existing consumers a moratorium has been placed on industrial connection for one year while new housing societies would be asked to make LPG or other arrangements.
Hameed further said that a state-of-the-art complaint center to be established soon to serve the industrial consumers round-the-clock. He also said that work on all new avenues including Pak-Iran gas pipeline, LNG and gas explorations is in full swing which would cater to 3400mmcf demand in next three to four years. On the demand of the LCCI President Irfan Qaiser Sheikh, the Managing Director SNGPL directed the Sui gas officials to immediately reactivate the LCCI-SNGPL Dispute Resolution Committee.
Sheikh raised the issue of low gas pressure and urged the company's authorities to ensure equal distribution of gas to all industrial sectors besides taking private sector, for being main stakeholder, on board while evolving load-management plans as the shortage of natural gas has become the prime issue for the industries where natural gas is an essential input of the manufacturing process.
He said that presently there was a load management of three days in Punjab whereas it was not the case with other provinces. He said that this discrimination must end with immediate effect. Sheikh said that after a gap of three days when gas was made available, production activity usually did not take place on the fourth day mainly because of low pressure. This practice not only results in decrease in production but also makes the provincial industry, particularly engaged in manufacturing, uncompetitive within the country.
He urged the SNGPL authorities to share information with the business community regarding the gas exploration, reserves, supply and demand situation, saying it has been reported that the current gas reserves were depleting and would become insufficient to meet the national demand in near future. There is a dire need to find out new reserves in the country, he added. The exploration of oil and gas was considered as a lucrative venture, the companies all over the world were eager to invest in this area, as it promises hefty dividends. What is lacking in Pakistan is a clear roadmap to channelize funds into this sector.
The president LCCI said that if any incentives were being offered to the private companies, it must be publicised so that private sector could be encouraged to divert its investment to this important sector. He said that in order to meet fast increasing energy demands, Pakistan needed to import gas from neighbouring countries. "We would like to know the status of Pak-Iran Gas Pipeline project and when it is going to be completed," he maintained.
He said that LCCI has serious reservations against the handling of complaints reported to SNGPL therefore first preference should be given to the complaints of industrial consumers so that the industry which is already facing numerous challenges should not suffer unduly.
Former Presidents LCCI Mian Anjum Nisar, Iftikhar Ali Malik, Sheikh Mohammad Asif and Mohammad Ali Mian also spoke on the occasion. Chairman SNGPL and former LCCI President Mian Misbahur Rehman also attended the meeting.