FRIDAY DECEMBER 30: Gas shortage set to become more acute: 'emergency' next month, says Asim

ISLAMABAD: Federal Minister for Petroleum and Natural Resources Dr Asim Hussain Thursday declared that there would be a gas emergency during January as its shortage would cross one billion cubic feet (BCFD) mark in the next few months. Speaking to journalists at Daultala near Gujjar Khan on the inauguration of Adhi Oil Field, Hussain said gas supply to Compressed Natural Gas (CNG) stations and industrial sector would be slashed next month.
According to him, there is an acute shortage of gas in the country and his Ministry is trying its level best to regulate gas under a tight schedule, so that all sectors could get a fair supply. However, he said, the shortage would become more acute by next month.
He criticised the previous government for not taking serious measures to explore new oil/gas reservoirs. According to him, gas pressure in the country is dangerously decreasing and in case compressors are jammed the entire country would have no gas for at least tow weeks.
The minister also said the CNG association should "stop lying" about the situation. According to him, CNG sellers earn Rs 28 profit on each kilogram of gas. He distributed shares among Adhi Oil Field workers under the Benazir Employees Stock Scheme and also announced a bonus for the employees.
Earlier on Wednesday, the Petroleum Ministry finalised a summary pertaining to hike in gas prices. Now it has sought a formal approval from the Prime Minister. According to the summary, consumers will face a rise in the range of 14 to 207 %, in order to generate about Rs 385 billion for gas utilities and import projects. If the summary is approved, the price of CNG would go up from Rs 67 per kg to Rs 80 per kg.
Liquefied Petroleum Gas (LPG) will cost an additional Rs 14 per kg after the imposition of Petroleum Levy worth $120 per ton on locally-produced LPG. The increase would help government generate Rs 4 billion as additional revenue every year. The minister said he would visit India on January 24 where he would discuss Turkmenistan-Afghanistan-Pakistan-India gas pipelines transit fee and other issues with his Indian counterparts.
The Minister directed the management of Oil and Gas Development Company Limited (OGDCL) to purchase at least two rigs and data processing equipments. He further said that the state-run company for past 25 years had not purchased any rig for the exploration and production of oil/gas. The minister said that the OGDCL had paid $2 billion on account of rent and rigs during the said period.
The Minister was of the opinion that the country's gas shortfall had increased to a dangerous level. If a Gas Load Management Plan was not implemented in an effective and meaningful way, there would be a gas crisis. Pakistan's current gas supply is a little over 4 bcfd against a demand of around 6 bcfd. He said the country had already achieved the target of conversion of vehicles into CNG fuel and now this facility was being misused as expensive vehicles fitted with CNG kits were being imported. Similarly, big transport vehicles like busses were also being converted to CNG. This has led to an unprecedented increase in the CNG usage in the country, according to him.
The event was also attended by Member National Assembly Raja Parvez Ashraf, Speaker Khyber Pakhtunkhwa Assembly Karamatullah Khan Chagermatti as well as local representatives and media. On company's behalf, Chairman PPL Board Hidayatullah Pirzada, Director General Petroleum Concessions Sher Mohammad Khan, who is also a PPL director, and Managing Director (MD) and Chief Executive Officer (CEO) Asim Murtaza Khan, were present on the occasion.
Adhi gas field is a joint venture with PPL as operator and Oil and Gas Development Company Limited (OGDCL) and Pakistan Oilfields Limited (POL) as partners. Daily average production from Adhi Field is of around 39 MMcfd gas, 1800 barrels per day Liquefied Natural Gas (LNG), 3,800 bbl oil and 125 tons Liquefied Petroleum Gas (LPG). Currently, 9 wells are operational at Adhi Field from Tobra-Khewra Reservoir and two from the Sakesar Formation.
Protests have already started in many parts of the country over the low gas pressure. At present, industrialists in Faisalabad, Lahore, Gujranwala and other areas are staging protest demonstration, due to prolonged gas load-shedding. In twin cities of Rawalpindi and Islamabad residents are taking to the streets.