The Minister for Petroleum Dr. Asim Hussain said on Monday that more than 250 million cubic feet per day (mmcfd) additional gas will be injected in the national transmission network by December this year that will help lower the gas load shedding as compared to last winters.
Addressing a convention of All Pakistan CNG Association (APCNGA), he said, the below average well head price tariff enjoyed by the fertiliser, power and industries at present was a great injustice that was resulting in a loss of Rs40 to Rs50 billion per annum to the national exchequer. However, he said a new rationale for determining gas tariff has been sent to the federal cabinet for approval.
The minister said that 100 mmcfd from Kunnar Pashaki would be linked to the system by October this year, while first reserves of 20 mmcfd of tight gas discovered by a Polish firm in Balochistan and 100 mmcfd from Latif and Sarwan would be injected in the transmission network by December, this year.
He assured the association that the government would pursue a uniform load management policy that would be implemented across the board other than the domestic sector. He said that the additional available gas would be supplied to CNG sector on priority. He also asked the association to hold talks with the Managing Directors of the two public sector gas utility companies to settle the issue of supply of available gas to CNG sector.
He said that planning was under way to formulate the gas supply mechanism for winter. According to him steps are being taken to curb gas theft, and during the last four months SNGPL had reduced it’s unaccounted for gas (UFG) losses from 14 per cent to 12 per cent while SSGCL had reduced them from 12 to 10 per cent. He said the bill to curb gas theft would be introduced in the upper house, Senate during the current week. The bill seeks strict penalties and imprisonment for people involved in gas theft.
Later talking to media, the minister said that the work on Iran Pakistan gas pipeline has been expedited and that is expected to be completed before December 2012. When asked how the country would raise financing of $1.2 billion for the project, he replied that the financial advisors for the project would be appointed in a week’s time and they would define the financing issue of the project.
The minister denied that the US Special Envoy for International Energy Affairs Carlos Pascual expressed concerns over the IP gas pipeline and said that the issue was not discussed in his meeting with the visiting US delegation.
Earlier speaking at the convention, Chairman of APCNGA Ghiyas Paracha said that the CNG sector was only sector that was paying highest gas tariff and contributed Rs27.1 billion in advance GST and Rs5.1 billion in advance income tax. He said unlike the other sectors they did not demand any tax concessions or refunds. He said CNG sector only used 7 per cent share in the gas supply while the general industries utilised 29 per cent where theft was rampant.
He said more than 3.5 million vehicles were plying on CNG that resulted in an annual saving of $2.6 billion since it reduced petroleum imports by 3.8 billion litres per annum. He claimed that the two days of load shedding in Punjab alone caused a burden of Rs42 billion per annum on the consumers who were already hit hard by food inflation. He warned that if the load shedding was not reduced they would seek public support to pressurize the government.
‘Additional 250 mmcfd gas to be added to the system’
