No gas, no surprise!

January 10, 2016

Despite government claims that the commercial use of gas has been restricted, the demand of the consumers is not met

No gas, no surprise!

Some things we appreciate only when the season changes, like electricity in summers and gas in winters. Though the governments over the years have all promised to tackle this issue, the situation remains the same.

Projects initiated in an effort to sustain gas were halted midway, the IPI gas pipeline, which later became Iran-Pakistan pipeline due to India’s reluctance, was stopped due to diplomatic reasons and TAPI gas pipeline was suspended primarily due to the security problems in Afghanistan.

It does not, therefore, come as a surprise that the recent onset of winter has brought with it severe gas shortage. Even though officials claim that they have extensively restricted the commercial use of gas and have tried not to give new connections, they have not yet been successful in meeting the needs of consumers.

Rashid Lone, former MD SNGPL tells TNS, "Despite popular belief, only 10% of the natural gas is being used commercially while 90% is dedicated for domestic use.

"Lahore has three gas pipelines -- one near Shahdara, another close to Multan Road and yet another on Burki Rd. Areas near these locations get reasonable amounts of gas but as the proximity decreases the gas pressure falls considerably.

"We are basically facing the demand-and-supply problem," he adds. "The government provides connections in villages, tehsils and also to new housing schemes to gain votes, ignoring the energy crisis at hand. Now with the import of LNG, things are bound to improve."

He went on to say that the solution for this is to control gas supply and restrict the provision of gas connections to new areas.

The gas crisis can largely be blamed on lack of planning. The state, without any foresight, decided to make natural gas available to the public at low rates. CNG stations were set up; gas connections were installed in homes and in industries without thinking as to what would happen when we ran out of natural reserves of gas. No alternates were explored for producing energy and projects initiated to sustain gas were either on a very small scale or were suspended indefinitely.

Domestic lives have been disrupted the most due to the non-availability of gas. Residents of Ghazi Road, New Muslim Town, Garhi Shahu and Chauburji have been facing extreme gas shortage. Huma Amjad, a resident of New Muslim Town says, "I have trouble carrying out daily chores around the house.

"Gas is a necessity, especially in winters. We are forced to use LPG cylinders in order to cook which is a safety hazard. But there is no alternative. Electric heaters are an added expense which we have to cope with in order to make sure the house is warm."

Sana Abid, a working woman and mother of two, has similar things to say: "As a single mother and the breadwinner for my family, I cannot spend a lot of money on LPG cylinders, nor can I afford huge electricity bills. Gas is available from 2am to 5am when it is not generally required; the rest of the time we have to make do.

"I’d probably have lots of bonfires with my children once the winter becomes extreme," she adds.

Industry is also said to be suffering from a shortage of gas and has to resort to other means of energy in order to sustain production. While large-scale industries such as Tetra Pak have their own power plants, others have to put up with the crisis and invest in backups which can help them remain functional.

All Pakistan Textile Mills Association (APTMA) submitted an 8-point package to the government which was agreed on but no action has been taken so far to facilitate the industry.

According to Anis-ul-Haq, Secretary Punjab region of APTMA, the industry needs focused market support in order to remain operational and cost-effective. He explains, "There are two main uses of gas in the textile industry -- capital power generation which helps in producing electricity through gas, and the use of gas for operating boilers for dyeing, printing and sizing of yarns. Currently, natural gas has been disconnected entirely in Lahore’s industry and we are provided with only four hours of LNG."

He further says that the textile industry remains operational 24/7 and backup costs are too much due to which availability and affordability become an issue. "Textile mills have been working on a 15 percent loss for the past six months and despite their meetings with the government several times, nothing has changed."

Packages, a premium packaging solutions company, is also faced with gas shortage. According to an insider, the gas valve in the company has been sealed and people from Sui Northern Gas Pipelines Limited (SNGPL) also come for random checks.

He says that this has been going on since November and they are likely to remain without gas until February. As an alternative, they are using furnace oil which results in a decrease in profits.

Lahore’s Food and Hotel Industry too, has been facing several problems. While posh hotels like Pearl Continental have their own gas tanks for backup, smaller organisations find it hard to make ends meet. Restaurant owners have been complaining about making marginal profits, Malik Rafique, owner of Dera restaurant says, "We are forced to invest in LPG cylinders and our production is affected due to gas shortage. Our branch in Faisal Town is being run on LPG entirely as gas connection has not been installed. We are unable to earn well."

An ex-restaurateur, however, says that gas shortage does not affect earnings to a large extent as gas is cheap and food is sold at a reasonable margin.

An OGDCL employee explains, "The government has been unable to cover depletion. Due to lack of planning, the government could not foresee the disastrous effect mass distribution of gas will have on the country. Import of LNG is quite costly and that too is partial.

"Gas which has to be provided to 100 houses is now being provided to 200 houses," he adds. "To top it all, people use compressors which creates problems for others. Iran-Pakistan gas pipeline and TAPI would take another 3 to 4 years to mature, so it is of utmost importance that the government invests in alternate energy projects and plans ahead."

Gas is essential for the industrial sector which in turn is responsible for the economic growth of the country. It would be advisable that the government shifts its attention to alternate sources of energy such as wind, coal and sunlight so that dependence on gas can decrease. Rise in rates on gas for domestic consumption would be ideal as people will be prompted to use it reasonably. A proper system should also be in place to deal with theft and misuse of energy in order to ensure equal distribution of resources.

No gas, no surprise!