ISLAMABAD: The Islamabad Policy Institute (IPI) Thursday proposed increased use of furnace oil for power production, so that the usage of natural gas in the sector could be curtailed during the impending scarcity this winter.

This was suggested as the priority short-term solution for the gas shortage during this year’s winter season in a report titled “An immediate Solution to the Looming Gas Crisis” launched by the think tank. The report has been co-authored by the IPI’s distinguished fellows, Abdullah Yousuf, who has remained chairman FBR and secretary petroleum, and Dr Fazil Ilyas, former member OGRA and ex-CEO OCAC.

The report noted that indigenous gas reserves were depleting fast because no major new reserves had been found for decades.

Moreover, absence of alternative fuels, subsidies, and lopsided policy making in gas sector have also contributed to the situation.

Abdullah Yousuf, speaking at the online event held to launch the report, said “the non-availability of adequate gas to feed our domestic and industrial sectors is leading to a crisis-like situation.”

The situation, he said, was getting critical.

Yousuf said instead of remaining stuck in the past and dwelling on the mistakes that have been committed, “we need to plan for the future, especially in the coming winter season. Our report outlines a solution to the problem which is based on maximum utilisation of indigenous fuels”.

Power sector, the report said, was the biggest consumer of gas accounting for 37 percent of its usage. Usage in power sector is growing further.

The IPI has, therefore, proposed use of furnace oil for power production, while cutting down the gas supplies to captive power plants.

It is estimated that up to 3,200 MW of electricity can be generated by using furnace oil.

The think tank believes that much of the furnace oil requirement could be met by the local refineries. The gas spared from power production, the think tank said, can then be diverted to other sectors particularly for domestic use, thereby taking off lot of pressure.

Dr Fazil said this strategy of increased use of furnace oil for power production coupled with restricting the use of CNG will, besides, helping tide us over the winter season also allow the local refineries to operate close to their full capacity rather than 72 percent utilisation witnessed over the past two years.

This, he said, will lead to increased local production of both petrol as well as high speed diesel and lower imports of said transportation fuels.

The IPI said several proposals and ideas have been making the rounds for some time including the curtailment of demand by not adding more consumers on the supply network and introduction of gas conservation measures; LNG import; import of natural gas from Iran and Turkmenistan; and exploring new reserves.

However, none of these planned actions can alleviate the immediate gas shortage or even address the problem in the next few years, it added.

IPI Executive Director Prof Sajjad Bukhari said none of these planned projects can alleviate the immediate gas shortage or even address the problem in the next few years because of their long gestation periods.

“The priority right now should be to deal with the emergency situation we are facing and adequately preparing for the winter, which is just around the corner,” he maintained.

Copyright Business Recorder, 2020