The petroleum ministry is threatening to deny gas supply to Independent Power Producers (IPPs) which owe Rs 21 billion to Sui Northern Gas Pipeline Limited (SNGPL). "I have decided to cut gas supply to IPPs which are defaulters of SNGPL," said Minister for Petroleum and Natural Resources Dr Asim Hussain while talking to Business Recorder on Thursday.
He said that the ministry of water and power had already warned IPPs to clear their dues, otherwise they would face a cut in gas supply. Replying to a question, the petroleum minister said that currently, no gas was being supplied to fertiliser plants, because for the time being, the priority was the power sector.
Dr Asim stated that Karachi Electric Supply Company (KESC) owed Rs 29 billion to Sui Southern Gas Company. However, he did not indicate that KESC would face a similar situation. Answering another question, he said that the petroleum ministry was giving final touches to a plan to flare gas and dormant fields, which would be presented to the cabinet for approval.
Asked whether Iran-Pakistan Gas Pipeline project will be implemented in view of the opposition of the United States, Dr Asim Hussain said that Pakistan would implement the project and he would personally start its execution. "The US (government) has never communicated to me its opposition to the IP project. I see all their statements in the media. (Work on the) pipeline will start during my tenure," Asim insisted.
Sources in the petroleum ministry told this correspondent that negotiations were under way with Iran for provision of compressors and pipeline to initiate the project as soon as possible. Pakistan, it is learnt, will also renegotiate gas price with Iran as its price is higher than that gas being offered under the Turkmenistan -Afghanistan-Pakistan-India (TAPI) project.
Iran has already offered Pakistan a credit line of $500 million to execute the project. Replying to a question, the petroleum minister said that Iran had offered to supply crude oil to Pakistan, adding that the offer would be sent to private refineries.