Domestic users to get priority: gas supply to industry to be curtailed, says Asim

The Minister for Petroleum and Natural Resources, Dr Asim Hussain, has said that there is an acute shortage of gas in the country. According to him, its demand will increase to 6 bcfd in the current month against an entire production of 4.2 bcfd. Hence, a net deficit of 1.8 bcfd. Addressing a press conference at SSGC head office here on Monday, he said that a 'gas load management plan' was being prepared to address the issue.
He said the government wanted to ensure an uninterrupted gas supply to domestic consumers. Gas supply would be curtailed to other sectors, including fertiliser, captive power plants, commercial and industrial consumers and CNG stations. He said that at a time when the country was facing an acute shortage of gas, some elements were misleading the masses. "These elements are creating confusion and blaming the government for the gas shortage in the country. These elements have their own agenda, and the people should know that these people are criticising the government for blackmailing, and their agenda is to earn more profits for their own," he said.
He pointed out that the demand of gas has increased manifold during the last many years while there was not a substantial increase in the gas production in the country. Resultantly, the gas shortage has now increased at an alarming level.
Giving reasons, the minister said the world standard practices were not used in the oil and gas exploration sector during the last many decades. Aerial survey was not allowed to any oil and gas exploration company. There existed no single data processing unit in the country and no rigs were purchased by any public sector exploration company in the last many years.
He said no comprehensive plan was made by past governments to explore new gas and oil reserves. "We have not done what we should have done," he said. The government could not resolve this issue in days because it had become extremely challenging and complex, he said. "We can't increase gas production immediately," he said, adding "We can only manage it through a load management plan."
According to him, the country's largest exploration company - OGDC - has spent one billion dollars on data processing from overseas, while the equipment could have been purchased for $3.1 million. "Now I have directed OGDC to purchase data processing equipment," he said. The company would also purchase two rigs every year and the government was now sending as many as 22 Pakistani engineers abroad for training on these equipment.
According to him, after the passage of the 18th Amendment, each gas producing province has the first right of its consumption. He pointed out that Balochistan produces 17 percent of total gas and consumes only 7 percent; Sindh produces 68 percent while its consumption is 41 percent; KP produces 10 percent and consumes 7 percent; while Punjab produces 5 percent gas against its consumption share of 45 percent.
The minister said that the government welcomed positive criticism. He asked people to give suggestions for its solution. He said the issue of gas shortage had become a challenge for the government. "We have to take difficult decisions to resolve the issue," he added. "There would be some difficulties on short-term basis. However, the situation would improve gradually," he said. The month of January would be very difficult. However, situation in February would improve, he added.
"We should try to solve the problem," he said. In answer to a question, the minister said the CNG kits that had already been imported in the country would be allowed to be fitted in vehicles. However, there would be a complete ban on the import of new CNG kits.
To another question, he said that after the passage of the 18th Amendment, it was now the responsibility of provinces to allocate more funds for the development of oil and gas producing districts. The provinces should spend 50 percent of oil and gas earnings on the development of the oil and gas producing districts, he added. Regarding closure of CNG stations in Sindh and Punjab, he said that the two gas distribution companies would finalise the CNG station closure schedule as per their needs.

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Gas production and its consumption in the country
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Province                 Share in        Share in
                            total           total
                       production     consumption
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Balochistan                    17%             7%
Khyber-Pakhtoonkhwa            10%             7%
Sindh                          68%            41%
Punjab                          5%            45%
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