CCI nod: MoP to table revised 'Gas Load Management Plan'

As Punjab province has mounted pressure on federal government on gas load shedding issue despite consuming much more gas than its production share, the Ministry of Petroleum is set to table a revised 'Gas Load Management Plan' before the Council of Common Interests (CCI) for approval after Sindh and Khyber Pakhtunkhwa (KP) High Courts issued orders against load shedding in respective provinces, Business Recorder has learnt.
Sources said that the Ministry of Petroleum has called a meeting, to be held on January 24, 2011, to finalise a revised gas load shedding plan in light of the recommendations of Sui Northern Gas Pipeline (SNGPL), Sui Southern Gas Company (SSGC), All Pakistan CNG Association and other concerned stakeholders. After finalisation of recommendations, the Ministry of Petroleum will either submit proposed revised gas load shedding plan to the Economic Co-ordination Committee (ECC) of the Cabinet or to the CCI.
According to breakup available with Business Recorder, Punjab province provided average supply to gas utilities at 174 mmcfd, KP 355 mmcfd which are 4 percent and 9 percent of total gas supply respectively in month of December 2010. Sindh provided average supply of 2681 mmcfd and Balochistan 728 mmcfd which accounted for 68 percent and 18 percent of total average supply respectively during the period under review.
So far as province-wise gas consumption is concerned, Punjab consumed average 1830 mmcfd and KP 211 mmcfd which are 47 percent and 5 percent of average consumption respectively in month of December 2010. Sindh consumed 1553 mmcfd and Balochistan 331 mmcfd which account for 40 percent and 8 percent of total average consumption respectively during period under review.
Sources said that in this scenario, Punjab was consuming more gas than its production share. However, it had created problems for the federal government. "Sindh High Court and KP High Court have given decisions that according to article 158 of constitution, two provinces will meet their requirements first and therefore no gas load shedding plan will be implemented in these provinces," Chairman, Supreme Council, All Pakistan CNG Association, Ghyas Paracha, said. "Government will have to amend the constitution if it wants to share load shedding equally among all provinces," sources added. In case of increasing load shedding, gas utilities have been cutting supplies in other provinces to divert gas to Punjab but now they can not follow this practice after Sindh and KP High Courts' orders.
Sources said that SSGC had no binding agreement with Karachi Electric Supply Company (KESC) for gas supply and, therefore, gas could be diverted to SNGPL to overcome gas crisis in Punjab. "But after court's order, now it has been impossible to divert gas," sources added. "Our first priority is to provide gas to domestic consumers," sources said, adding that domestic consumers have lodged complaints against SNGPL in Ministry of Petroleum over gas load shedding that has also resulted in protest in different parts of Punjab.
Paracha said that SNGPL had such provision in gas sales agreement inked with industry that allowed SNGPL to cut gas supply from December 1 to February 28 to industry. "But industry is being provided gas; that has created problems for the consumers of priority sectors, including domestic and CNG, causing strong protest in different parts of Punjab," he added.