The government may continue the ban on issuing new licences for Compressed Natural Gas (CNG) connections for one more year as per a proposal of the Finance Ministry submitted to the Economic Co-ordination Committee (ECC) of the Cabinet. The objective of this proposal is to curtail growth in gas demand, sources told Business Recorder.
Petroleum Ministry has proposed suspension of commissioning new industrial and CNG connections for three months under Gas Load Management Plan during December 2009 to February 2010 to overcome gas shortfall. This step will result in saving of 20-25 MMCFD gas during peak winter season. Issuance of licences for new CNG stations is already banned, except in Balochistan, and the ban will continue if the proposal of the Finance Ministry to extend it for one more year is approved, sources said.
Finance Division in a letter written on September 30, stated that it had examined the proposals of Petroleum Ministry and is supportive of them. It said that it proposes the following measures: (1) request Alternative Energy Development Board (AEDP) to initiate pilot project for installation of solar water heaters, starting from government houses in Islamabad; and (2) explore the option of banning new CNG stations for one year to curtail gas demand.
Total gas supply is projected at 1.843 BCFD against total demand of 2.573 BCFD in November 2009, that would reach 2.048 BCFD against 2.727 BCFD demand in March 2010. Finance Ministry has also supported the proposal of Petroleum Ministry to divide industrial estates, including textile sector, into different zones for gas disconnection on rotational basis. Finance Ministry has also endorsed the Petroleum Ministry proposal of rotated weekly holidays by industrial clusters and estates. Ministry of Textile has also supported this proposal to be implemented during the peak winter season, sources said.