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The federal cabinet is likely to approve gas-load management plan for upcoming winter season today (Wednesday), official sources said. According to officials at Ministry of Petroleum and Natural Resources, the ministry has worked-out the gas load-management plan for the up-coming winter and has convened a high level meeting of all the stakeholders to finalise it, so that it should be sent to cabinet for approval.
Sources said that as per agreement with the industrial sector the gas supply would remain suspended for three months. "We are not in a position to supply uninterrupted gas supply to all the sectors, even managing the gas supply to domestic consumers would be difficult for the government, setting aside the CNG and industrial sectors", official added. The meeting would be chaired by Dr Asim Hussain, Federal Minister for Petroleum and Natural Resources.
Officials said that during upcoming winter all the sectors of economy would face severe gas shortage, which is expected to touch 2 billion cubic feet per day (BCFD). "The government is already under pressure by different influential business groups, which started intense lobbying for getting maximum share of natural gas for their uninterrupted operations from the dwindling supplies. Now the ministry has convened a meeting of all stakeholders to finalise the gas load-management plan for the upcoming winter season, which would be sent to the cabinet for approval", the officials maintained.
They said that the decision was taken to avoid controversy over the gas load-management plan, as the government has decided in principle to implement the agreements with different consumers in letter and in spirit. The Ministry of Petroleum had earlier drafted a gas load-management plan which sought cut off of natural gas supply to the industrial sector for three months, ie December to February to meet the rising demand of the domestic consumers.
The source said the demand side management will be very difficult in upcoming winter season and if the government did not take firm stand on curtailing the gas supply the entire system might choke, as the gas transmission network especially in Punjab is working under extreme pressure.
The power sector is demanding gas as its first right for power generation, while industrial sector is lobbying for gas to maintain its exports growth, which is a bonanza for the government in the form of increased export earnings without any other external inflow from donors.
Considering the precarious gas supply situation, the official said, we have no option but to implement the gas supply to various consumers as per their agreement. For the last two years, the influential industrial consumers were getting supply for full year against their 9 months gas supply agreements. Meanwhile, All Pakistan CNG Association (APCNGA) has requested the government for uninterrupted gas supply as per agreement.
Ghiyas Paracha, Chairman APCNGA talking to reporters here on Tuesday said that the meeting with the association has already put a formula to government regarding the gas load-management plan for winter. "We will also suggest that how to make gas load- management plan for CNG sector by saving the same quantity of gas as was done in the past. We have given such formula that will benefit both government and public, and every one will be able to get CNG," he added.
He said that if the government is supplying uninterrupted gas to CNG sector it would help increase revenue, reducing the petroleum import burden. The gas supply of all those sectors, which have alternate fuel options, shall be cut off for three months according to law and agreements. This law will be implemented as well. We will support the government in this regard and provide all necessary consultations, but will not allow anybody to get illegal or unjustified benefit.

Copyright Business Recorder, 2011

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