Thursday December 08, 2022

Cement, CNG, fertiliser sectors to face gas shortage in winter

The government is to exercise gas load management for winter where the household consumers would be prioritised

November 05, 2022
Representational image of gas supply — Canva/file
Representational image of gas supply — Canva/file

ISLAMABAD: The government is to exercise gas load management for winter where the household consumers would be prioritised; however, the industries [other than five zero-rated industries] including cement, CNG, and fertiliser sectors will face significant gas shortages. 

An official of the Petroleum Division said that due to shortage of domestic and imported gas, these industries would be affected; however, the five zero-rated sectors including textile, carpets, sports, surgical, and leather would get uninterrupted concessional gas supplies.

It may be noted that the government has not yet formally approved the gas load management plan for winter; however, these sectors would face shortages. The overall gas shortage could cross 1.2 billion cubic feet per day in the cold season.

For the domestic sector, the division has prepared a plan to supply gas three times a day for cooking purposes with full pressure. The Petroleum Division’s gas load management plan is on the table to be implemented from November, but waiting for prime minister’s approval.

Sources said that the government would order for nine LNG cargoes in December-January while 10 cargoes would be available in January-February 2023 to minimise the shortages and meet the demand.

The official said that gas supply to all captive power plants of non-export industrial units could also be discontinued. Gas saved through curtailment would be diverted to domestic customers to help them cater to their enhanced gas loads arising due to the winter season.

The power sector would face the RLNG supply shortfall during the winter months. The official said that in November 2022, nine LNG cargoes of 806 MMCFD would arrive. However, supply to the power sector would be 210 MMCFD in November. The government had arranged 10 cargoes for December 2022, but the power sector would get only 268 MMCFD.

For January, February, and March 2023, nine cargoes of 875 MMCFD for each month have been arranged, of which 115 MMCFD, 237 MMCFD and 390 MMCFD of RLNG would be supplied to the power sector respectively against the demand of 510 MMCFD, 350 MMCFD and 380 MMCFD.