Punjab to get gas this winter: minister

LAHORE: Unlike previous years, supplies of natural gas to various sectors of the economy will resume for the first time this winter, thanks to opening up of liquefied natural gas (LNG) terminal, Petroleum Minister Shahid Khaqan Abbasi told The News on Saturday.
Natural gas supplies to power, fertiliser and CNG sectors used to suspend even in summer months when the demand has been seen at lowest ebb, Abbasi said, adding: "We have ensured RLNG supply continued to fulfill the demand of such sectors in summer months as about 14 shipload of LNG had already been imported till the end of the last month since inauguration of the first import terminal."
With a view to meeting the demand of RLNG for winter months up to March 2016, around a dozens of more ships are expected to import LNG amid growing demand of natural gas in peak demand season, he said.
For the last over five years, Pakistan has been facing acute deficit of natural gas, which is the primary fuel for several large sectors of the economy.
Currently, the country faces a gas shortfall of around two billion cubic feet per day (BCFD), or 33 percent, of its total gas demand.
This gas shortage has resulted in severe underutilisation of power plants, which resulted in persistent load shedding in the country.
Besides, gas deficit is adversely affecting the fuel supply to more than 2.58 million CNG vehicles in the country, which is largest fleet in the world.
Fertiliser sector is another prey of chronic gas shortages. In fact, gas shortage crisis has stunted Pakistan’s economy where businesses have been forced to shut down on account of no gas, Abbasi said.
Typically, of the total natural gas usage, power generation consumes around 35 percent, industrial use stands at 23.8 percent, fertilizer 15.6 percent, CNG 5.4 percent and household share is estimated at 18.1 percent.
Abbasi said that the production of domestic gas has been stagnant due to various factors and new investment in this sector would take time to bear desired results.
In the meantime, he said, LNG is the only mid-term solution to the chronic gas shortages.
"With the help of imported LNG, we have succeeded in running 2000MW capacity of power plants that had been shut or producing costly fuel-based electricity," he said.
Such power generation capacity was underutilisation because of unavailability of gas and due to higher fiscal impact of running these plants on diesel or furnace oil, which are comparatively very expensive fuel.
The CNG sector has also been given supplies till late last months, he said, adding that it is expected that their regular supply would start once procedural issues about LNG upcountry consumption are resolved in the coming weeks.
Abbasi said that LNG is a cleaner fuel substitute to the expensive alternatives in the form of diesel and furnace oil, LPG and kerosene.
LNG as a fuel for power generation over furnace oil has more efficiency in power generation and has much lower O&M costs, he said.
The first LNG import in Pakistan was made possible through the ETPL Fast Track LNG Project, commissioned recently to import 400mmscfd of RLNG and has the capacity to handle up to 600mmscfd. This terminal alone will save up to $600 million for the country through fuel substitution.