THURSDAY JANUARY 05:Power, fertiliser and industry: no gas supply this month

ISLAMABAD: The Cabinet in its meeting on Wednesday, presided over by Prime Minister Yousuf Raza Gilani, decided to suspend supply of gas to power, industries and fertiliser sectors during January 2012 with a view to ensuring maximum gas to domestic consumers. At a press briefing after the Cabinet meeting, Minister for Information, Firdous Ashiq Awan, said that domestic consumer is the constituency and top priority of the government.
She said that the Ministry of Petroleum has been directed to ensure uninterrupted gas supply to the domestic consumers, and warned that no negligence would be tolerated in this regard. She said the Cabinet also decided that all civil servants drawing salaries from the national exchequer would declare their assets statement.
Giving details about the decisions on energy crisis, she said that Cabinet also directed the Ministry of Petroleum to work out future priorities of CNG sector in the light of recent agreement reached with them. The Minister said that the Cabinet meeting was given a detailed presentation and briefing by the concerned Ministry about the production and consumption pattern in all provinces. The meeting was informed that Punjab is lowest provinces as far as gas production is concerned, and highest in terms of consumption.
Total gas production from Punjab is 5 percent, whereas total consumption by the province is 45 percent; Sindh produces 69 percent and consumes 41 percent; Balochistan produces 17 percent gas and consumes 7 percent; and Khyber Pakhtunkhwa is producing 9 percent and consuming 7 percent. The meeting was informed that Punjab provinces is producing minimum gas and consuming maximum. The Minister said that as per agreed formula, the province which produces gas has the first right on its consumption, but the Cabinet meeting directed that all stakeholders in Sindh should be consulted and consensus evolved to divert a portion of gas from the province to Punjab so that industries in that province could operate a few days in a week.
Fardoos said that as per agreements, the government was not bound to provide supply of gas to industries for whole year because the agreements signed by them with the SNGPL are for nine months. This is clearly stated in the agreement signed by them at the time of getting connections that they would not be provided gas for three months--December to February.
The Prime Minister, who would inaugurate Kunnar Basaki gas field next week, to add 100 mmcfd gas in the system at the first stage, also directed the Ministry of Petroleum to expedite LNG import project and other gas import projects for early import of gas.
The Minister said that the Cabinet also directed the Ministry and relevant departments to go against gas defaulters by using recently passed legislation aimed at curbing energy theft to bring down 12 percent gas losses. She said that the monthly subsidy for the power sector has been increased from Rs 10 billion to Rs 25 billion per month with the objective to reduce load shedding by adding 1200 MW in the system. The Minister said that briefing by the Ministry of Water and Power showed that massive decline in hydel power generation, especially in the month of January and February, leads to the problem of load shedding. She said that according to Ministry of Water and Power hydel power generation had decreased from 5000 MW to 1000 MW in January 2011, creating a shortfall of 4000 MW in the system. The Minister said that load shedding also increased due to non-supply of gas to the power sector.
Firdous said that Cabinet members were very much disappointed that energy crisis was exploited by certain political parties. The meeting, she said, also deplored non-co-operation of regional local administration in the provinces with officials of SNGPL in taking action against people involved in gas theft.
Secretary Petroleum Eejaz Chaudary said that of total 100 percent, gas supply to the fertiliser sector was 25 percent, power 27 percent, domestic 17 percent, CNG 9 percent and industries 22 percent. Cabinet was informed about decline in inflation to single digit in the month of December 2011and that the decision to purchase sugar at prevailing market rate to provide relief to the common man. On issue of locomotives for Pakistan Railways, the Cabinet constituted a committee to submit recommendations to ensure transparency in purchase.