Fertiliser units, CNG stations: 5,500MW power can be generated if gas supply stopped

The country could produce 5,500 megawatts of additional cheap electricity if government stops gas supply to fertiliser plants and CNG stations. Fertiliser sector is using an estimated 700 Million Cubic Feet per Day (MMCFD) of gas which can produce 3,500MW of power, and the CNG sector is consuming about 400MMCFD of gas sufficient to produce 2000MW of electricity.
If the government for a limited time decides to stop gas supply to CNG and fertiliser industry the ongoing energy crisis could easily be handled.
The country is suffering an estimated Rs 140 billion per annum loss due to closure of four urea plants and if all the urea plants are closed the annual loss will rise to Rs 280 billion per annum, while benefit from diverting of gas to power plants would be around Rs one trillion to the overall economy.
According to official documents, power generation thorough gas costs Rs 6 per unit while through furnace oil it costs Rs 16 per unit.
According to a senior Petroleum Ministry official, if Pakistan stops producing local fertiliser for a limited time and dedicates the gas consumed by the urea plants to power houses it would revive small and medium enterprises which would lead to economic growth as well as increase Pakistan''s exports and as a result the country''s balance of payment position will improve.
Official sources said that at present the government is seriously considering shutting down urea plants for at least two to three years to divert gas consumed by the fertiliser industry to power plants.
Sources further revealed to Business Recorder that urea plants also do not use gas optimally. The National Productivity Organisation (NPO) has estimated efficiency of fertiliser plants in the country at around 35 percent except for one modern unit established by Engro that is around 65 percent efficient. The fertiliser plants are consuming around 818 Million Cubic Feet Daily (MMCFD) of gas.
The Mari Petroleum Company from Mari gas field located in Sindh is producing 600MMSCFD of gas, which is being allocated to the following customers: Engro Chemicals Pakistan 103 MMCFD, Fauji Fertiliser Company Mirpur Mathello 95.50 MMCFD, Fauji Fertiliser Company Ltd Goth Machhi 184 MMCFD, Water and Power Development Authority 110MMCFD, Sui Southern Gas Company Ltd 1.6 MMCFD, Foundation Power Company Daharki 65 MMCFD and Star Power Company Ltd 44MMCFD. The overall urea production is also very frustrating as the whole fertiliser sector, including Mari as well as plants on SNGPL network, produced 4.1 million tons of urea compared with 4.8 million tons last year and against an installed capacity of 6.9 million tons. This implies an overall production loss of 2.8 million tons in a year.