KESC to get 100 mmcf gas per day in three months

Minister for Petroleum and Natural Resources, Dr Asim Hussain, said on Sunday that the Karachi Electric Supply Company (KESC) would get at least 100 mmcf gas per day by the LPG air-mix plant of Sui Southern Gas Company (SSGC) in the next three to four months.
"This will help in reducing load shedding for domestic and industrial consumers of KESC and ease energy crisis in Karachi", he said while addressing a press conference at SSGC headquarters here.
The Managing Director of SSGC, Azim Iqbal Siddiqui, was also present on the occasion, along with senior management of the utility company. He said that KESC is installing 600 megawatts power plant to meet the growing demand for electricity, and some of this gas will be provided to this plant. Most of the upcoming plants of KESC are on gas and therefore they need more gas, he added.
He said that the government would encourage LPG in the transport sector and is considering withdrawing sales tax, and giving some incentives to bring LPG prices close to CNG, petrol and diesel.
The minister said that SSGC was facing a total shortage of 150 mmcf, which is sizeable, and therefore, resorting to load management by cutting gas supplies to KESC, CNG and industrial sectors. CNG stations will be closed for two days while industry will face one day shutdown. He pointed out that 200 mmcf of gas per day will be added to SSGC's network by end of June this year through five gas fields, while another 50 mmcf gas is also expected from two fields.
Talking of the mid term energy plan, Asim said that LNG would be on stream in the next two years and the government would encourage liquefied petroleum gas (LPG) over CNG in the transport and commercial use.
"We will encourage LPG for new connections in domestic and commercial sector instead of natural gas in future", he noted. He appealed to the people to be patient as the government was taking all measures to increase gas supply in the country. In this regard, he said, Iran-Pakistan gas pipeline was on line and would be completed by the end of 2013. Chinese Bank ICBC-led consortium has been constituted while financial advisor will be appointed after the meeting on Thursday, he opined.
Similarly, gas sale purchase agreement of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline is in the final stage. "India has shown its interest in 1.2 billion cubic feet (bcf) from TAPI project and I am going to India to discuss the details," he added. Dr Asim said that Pakistan would save at least $10 billion due to reduction in gas tariff under TAPI project and subsequently under Iran-Pakistan gas pipeline.
He said that there is a clause in Iran-Pakistan gas pipeline project that prices would be re-negotiated after reduction in TAPI gas, which is 60 percent of international crude prices.
Referring to SSGC's outstanding amount against KESC, he said that it had started paying to SSGC, "and we have a meeting today with electricity utility company in this regard".
He said the tariff for tight gas is $6 to 7 per btu while it is $14 for shale gas exploring which includes R & D cost. He said that PPL and ENI Pakistan (Italy) are working on 500 mmcf gas per day for shale gas project.