ISLAMABAD: The government has so far not released Rs 10 billion to Pakistan State Oil (PSO) committed by the Prime Minister on April 15 to enable the company to clear international letters of credit (LCs), it is learnt. Sources in the Petroleum Ministry told Business Recorder here on Friday that PM Mir Hazar Khoso Khan assured the cash strapped PSO of providing Rs 20 billion to enable it enhance fuel supply to power sector on April 15, but so far the Ministry of Finance has only released Rs 10 billion.
Sources added that PSO was due to pay Rs 10 billion to international fuel suppliers on Friday but was unable to clear the dues owing to delayed payments by the power sector which owed Rs 132.8 billion to PSO. Sources said the Petroleum Ministry had also assured the Ministry of Water and Power of providing additional 150 million cubic feet per day (mmcfd) of gas for the efficient power plants but to-date it had only managed to supply 55 mmcfd gas to power sector, which is not sufficient to deal with the day to day increase in demand for power.
"At present, urban areas are facing up to 12 hours of loadshedding while rural areas are facing 18 hours of loadshedding. Currently Pakistan's power sector is eating up furnace oil worth Rs 35 billion per month. The government wants to increase furnace oil supply to power sector by 4,000 tons per day which will cost Rs 10.2 billion per month", the official added.
To provide additional gas to powerhouses, the government can either slash supply to CNG stations or to fertilisers plants. Gas supply to CNG stations remains suspended for four days in Punjab, and two days in Sindh, however CNG accounts for 250 mmcfd. The Ministry of Water and Power is also expecting that with the melting of snow water flow in rivers would increase as a result hydel generation would rise.
Petroleum Ministry has directed Sui-Northern Gas Pipelines Limited (SNGPL), Sui-Southern Gas Company Limited (SSGC), Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to work out a detailed plan to provide additional gas to power sector. The gas distribution companies SNGPL and SSGC as well as gas producing companies were finding it difficult to arrange additional gas for power sector, the official added.
The government is trying to make four private power houses namely Orient, Halmore, Saif and Saphire functional. Each power plant would be provided with 38 mmcfd of gas which could produce up-to 800 megawatts of electricity, but so far no arrangements have been made in this connection. At present, powerhouses are consuming around 780 mmcfd gas out of a total 4.3 billion cubic feet per day (BCFD) production, which is about 1.7 BCFD short against country total managed gas demand.
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