Problems regarding the supply of gas in the coming winter would become more serious as compared to the last year, as the demand and supply gap has started to widen, said Managing Director Sui Southern Gas Company (SSGC) Dr Faiz Ullah Abbasi. Addressing the business community on Tuesday, he said it was predicted that gap between the demand and supply of gas would increase in 2010, and added that planning is under way to minimise this gap.
Commenting on the gas leakage per day, Abbasi said around 90 million cubic feet gas per day was leaking because of old gas pipelines. However, he was of the view that if the SSGC succeeds in plugging this leakage on a daily basis, the saved gas could be used to generate 450MW electricity.
Referring to the unaccounted for gas (UFG) loses, he said the SSGC would be implementing a five year plan to control the UFG, and added that all out efforts would be made to bring it down from 8 to 7 percent. Under the plan, the old gas pipelines would be replaced to plug leakage and also to minimise gas thefts, he also said.
Abbasi said the Oil and Gas Regulatory Authority (OGDC) has imposed a fine of Rs 3 billion per year on the SSGC regarding its failure to meet the UFG 5 percent benchmark. The SSGC would file a revised petition for a wavier of the fine, he said. Commenting on the LNG project, he said the project has been delayed.
Deputy Managing Director SSGC Syed Hassan Nawab said the company is working on a new gas law regarding theft, which would be forwarded to OGRA for its consideration. Enlightening about a survey, to ascertain gas thefts, conducted by the SSGC he said the most number of thefts were done in the 'tandoors' and bakeries. Under the proposed law, the SSGC would be able to register FIRs against gas thefts, he also said. He admitted that with an increase in gas tariffs, gas thefts would also increase.
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