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Gas crisis deepens as supply to industries, CNG outlets halted

ejaz007

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Other companies can increase the production for a day or two to reduce the shortfall. DGPC is already in touch with the companies and gas production from other fields shall be increased for a short period to reduce the shortfall.
 

Blacklight

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70 per cent RLNG supply to be restored by tomorrow, says Azhar
July 02, 2021
Energy minister says 40 per cent regasifaction of RLNG achieved two days ahead of schedule


ISLAMABAD:
Minister for Energy Hammad Azhar said on Friday that 70 per cent of regasified liquefied natural gas (RLNG) supply will be restored by tomorrow (Saturday).

The minister's claim came as he informed that 40 per cent regasifaction of RLNG had been achieved ahead of schedule.

"Dry Docking of RLNG terminal update: Change over of ships completed on time on Wednesday. 40% regasifaction of RLNG from the replacement ship has been achieved 2 days ahead of schedule," the minister said on Twitter.

"We are targeting 70% restoration of RLNG supply by tomorrow InshAllah," Azhar added.
Dry Docking of RLNG terminal update:
Change over of ships completed on time on Wednesday.
40% regasifaction of RLNG from the replacement ship has been achieved 2 days ahead of schedule.
We are targeting 70% restoration of RLNG supply by tomorrow InshAllah.
— Hammad Azhar (@Hammad_Azhar) July 2, 2021
Two days ago, on June 30, the minister said that the Kunnar-Passaki Deep (KPD) gas field had resumed supply to the Sui Southern Gas Company Limited (SSGC) network after days of decline in gas availability.
Taking to Twitter, the energy minister announced that the gas field had completed its annual turnover and was now ready to pump the much-needed gas to the SSGC.

Read Use of RLNG by K-Electric to cost Rs18 billion

He said the start of dry docking of Engro’s LNG terminal will be completed by Monday and that Sui Northern Gas Pipelines Limited (SNGPL) gas diversions are also expected to take place during this period.
The country is facing a twin crisis of shortages in the supply of energy and gas as the SNGPL completely stopped gas supply to three sectors, including cement and CNG stations in Punjab and Khyber Pakhtunkhwa till July 5.

Earlier, the energy minister had told a private news channel that the government would cover the gas shortage for power generation by slamming brakes on the supplies to the industries and the CNG sector and diverting system gas to power plants.

On June 28, in view of a shortage of gas that is affecting power generation, the energy ministry issued a no-objection certificate (NOC) to power producers to import furnace oil.

The NOC for importing the much-needed fuel was issued after the Petroleum and Power Division held a consultation with the Cabinet Standing Committee on Energy.

The decision was made after disruptions in the gas supply to power plants fuelled fears of an intense energy crisis and a dramatic reduction in the supply of electricity across the country.
 

GHALIB

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View attachment 757834

The gas crisis has deepened across the country as two state-owned companies on Monday announced complete closure of gas supply till July 5 to industries and CNG stations following a decline in gas availability, low pressure in the system and dry docking of LNG terminal.

CNG stations in Sindh were to open from June 28 after the closure on June 22, but Sui Southern Gas Company Limited (SSGCL) stopped supplies to them till July 5 in view of the lingering shortfall of 160mmcfd due to annual turnaround of Kunnar Pasakhi Deep (KPD) gas field, causing a decline in gas availability and resulting in depletion of line pack and low pressure in the system.

Sui Northern Gas Pipelines Limited (SNGPL) completely stopped gas supply to three sectors — cement, CNG (compressed natural gas) stations and non-export industry — in Punjab and Khyber Pakhtunkhwa till July 5 due to dry docking of LNG terminal.

Energy Minister Hammad Azhar had told a private news channel the other day that the government would cover the gas shortfall for power generation caused by dry docking of the Engro RLNG terminal by cutting supplies to the industries and CNG sector and diverting system gas to power plants.



Stakeholders at a press conference held at the head office of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Karachi on Monday blamed poor management, bad decision-making and lack of vision of the government for the crisis.

FPCCI president Mian Nasser Hyatt Magoo said the crisis would cause huge losses to the business community and the public alike, affecting businesses and reducing production and exports. He said sales tax on LNG for the CNG sector had been increased from five per cent to 17pc, besides imposition of 5pc customs duty. This decision should be reversed immediately, he demanded.

The FPCCI chief said the entire country was in the grip of energy emergency due to the badly-timed import of LNG, adding that it was the worst time to go for yearly repair and maintenance of the LNG terminal. He said that neither the government had imported gas itself nor allowed the CNG sector to do so.

Mr Magoo said the nationwide gas suspension was unacceptable as it would take its toll on the masses, industry and the CNG sector.

All Pakistan CNG Association leader Ghiyas Abdullah Paracha said policies of the energy sector were not in line with the ground realities. The crisis would continue until the CNG sector is allowed to import its own gas. “If we import our own gas, loadshedding will end and the government will generate Rs82 billion, but this is not acceptable to a few bureaucrats,” he said.

Mr Paracha said the CNG sector in Punjab and Sindh were using imported gas and it had nothing to do with the reduction in domestic gas production nor did it have any justification to cut off gas.

All Pakistan CNG Association chairman Khalid Latif said Rs450bn had been invested in the CNG sector, but the future is bleak and hundreds of thousands of workers have been displaced from the CNG sector.

SSGCL had last week completely suspended gas supply to non-export industries, followed by 50pc cut in supply to captive power units. SSGCL spokesman Safdar Hussain said the decision had been reversed and now 50pc gas supply had resumed from Monday to export industries, followed by 100pc stoppage of gas to captive power units.

Businessmen Group chairman Zubair Motiwalla said it was true that SSCGL had reversed the decision, but it had no importance as there was no gas as the pressure is either half psi or one psi which was insufficient to run production activities. “The industries can run on five psi of gas pressure,” he said, adding that usually industries had been receiving 8psi of pressure in normal days.

Gas suspension in Punjab, KP

Since gas supply to two major consumers in the fertiliser sector — M/s Agritech and Fatima Fertiliser — would also remain suspended till July 5, SNGPL termed dry docking activities at the LNG terminal unplanned ones.

“The re-gasification from EETPL (Terminal-1) shall be disrupted during the period — from June 29 to July 5 — due to unplanned dry docking activities. Therefore, in order to manage gas loads during the period and pursuant to the minutes of the meeting of June 9, the gas/RLNG supply to CNG, cement and non-export industrial sectors across the franchised area of SNGPL (including Punjab and KP), as decided in the consultative meetings with the ministry would remain suspended,” read an internal memorandum circulated to the senior officials concerned on Monday.

“It is pertinent to mention that the physical disconnection of all consumers is critical, otherwise the impact of curtailment will be marginalised,” it stated.

According to an official, dry docking activities at the terminal are actually two days. “But resumption of gas supplies will take 6/7 days, including two-day dry docking period, as it involves various activities — starting operation of the terminal, re-gasification process, maintaining required pressure and injecting gas to the pipelines/system for onwards supplies to various sectors,” he said.

The official said that at present SNGPL was facing over 600mmcfd of RLNG due to maintenance of the terminal. However, the company is receiving around 850mmcfd of system (indigenous) gas from various gas fields and 600mmcfd of RLNG through LNG terminal-2.

He said the company at present had gas as per demand of domestic, zero-rated export industry and the sectors other than cement, CNG, non-export industry and two major consumers — Agritech and Fatima Fertilizers.

Talking to Dawn, SNGPL managing director Ali J Hamdani termed the shortage temporary, claiming it would improve soon. “We had an extensive meeting with the government on Monday. And we all were agreed that the shortage is for some days and soon the situation would improve,” he added. He said there would also be no gas shortage in July.

this is really alarming for pakistan industries.
 

Darth Vader

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Pakistan has huge wind, Solar and water resources which can generate all the required energy Pakistan needs.
CNG should be left for industrial heavy use with better availability and cheaper rates it will increase exports for state.

Pakistan needs major investment and lowering the taxes on installing solar panels on homes and need private companies to invest so people can install these homes and even sell electricity back at high load price time.

Another issue Pakistan needs to re develop its bigger cities into smaller cities that will lower high load from few points not just electrical but water, gas and modern design with less carbon footing.
 

Zibago

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Why not say 100 years and save yourself some face or u-turns for that matter?
Otni zalalat key baad phir wapis a hi gaye ho to zara parh bhi lo trigger kia tha is crisis ka aur 5July key baad recovery kion ho gi
 

SmartGeek

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Again Kashmir results aur Mariyam ki bakwas key baad phir wapis a gaye go
Kashmir results? I guess it is just coincident that I used Pakistan defence forum after a long time and it happened to be at the time of Kashmir election. So PTI won in Kashmir election? Congratulation. I haven't been following the politics lately so I cannot comment on anything. As for you, I expect u-turn on order given the reputation regardless of the politics as Mr Khan is known for u-turn and there is no denying on it. It depends on whether u-turn proves beneficial to the nation or not and that you can argue on it.
 

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