The Economic Co-ordination Committee (ECC) of the Cabinet, scheduled to meet on Tuesday, is likely to approve curtailment of 50mmcfd gas supply to Karachi Electric Supply Company (KESC) by diverting it from Sui Southern Gas Company (SSGC) to Sui Northern Gas Pipeline (SNGPL) system under gas load management Plan 2009-10.
Sources told Business Recorder that a committee, formed by ECC under the chairmanship of Minister for Petroleum and Natural Resources Naveed Qamar, has submitted its report to ECC for approval. Other members were Ministers of Industry, Textile and Water and Power, Planning Commission Deputy Chairman and Petroleum and Natural Resources Secretary.
SSGC is currently supplying 50mmcfd gas from Sawan gas field to KESC and, subsequent to ECC approval, it would be curtailed and diverted to SNGPL during the peak winter season.
A meeting of committee was held on November 5 to finalise recommendations on diversion of gas from SSGC to SNGPL system by curtailing supply to KESC under winter load management. According to a report, submitted by the committee to ECC, KESC had agreed to reduce its gas requirement of 50mmcfd during winter season out of 190mmcfd earmarked earlier for KESC.
After the reduction of gas supply, KESC would be supplied fuel oil by Pakistan State Oil (PSO).KESC will not bear additional cost differential between fuel oil and natural gas. The cost differential between fuel oil and gas will be picked up by the government. Finance Ministry will directly reimburse cost differential to PSO. "But KESC will bear the cost of fuel oil equivalent to the cost of gas spared by it and directly pay it to PSO," sources added.