Government committed to bring deep rooted reforms in the energy sector

KARACHI: The Federal Government is committed to bring deep rooted reforms to cater the national energy requirement and increase the produce of indigenous gas through new explorations which shall likely be achieved in next five years.

Under the Prime Minister’s directives, in order to facilitate industries and exports, necessary arrangements have been made to provide gas without any outages during next five months. Any shortfalls due to high demand of gas during winter in north shall be catered and fulfilled by injecting 350 MMCFD to maintain the gas supply in the SSGCL system between 1350 to 1400 MMCFD till the situation normalize.

The Federation had requested the Sindh Government to provide the right of way for laying high pressure gas pipelines for 17 KM project to overcome energy crisis and approval of Sindh Cabinet is expected in next few days. Our Government under the leadership of Prime Minister Imran Khan is envisioned to enhance exports and more industrialization.

Therefore, to meet the industrial gas demand, Government shall provide new RLNG connections. To address the gas issues in the SITE Industrial Area, emergency clause of PPRA shall be invoked by SSGC to reinforce the pipeline infrastructure in the SITE Industrial Area and pipeline shall be laid within two months and I will inaugurate on 9th December, 2020.

This was announced by Omar Ayub Khan, Federal Minister for Energy (Petroleum & Power) during his visit to Karachi accompanied by Nadeem Babar, Special Assistant to Prime Minister (SAPM) on Petroleum, Mian Asad Hayaud Din Federal Secretary for Energy and top management of SSGCL to meet the Chairmen and Office Bearers Textile Exporters Associations organized by Council of All Pakistan Textile Associations at PHMA House, Karachi today.

Speaking on the occasion, Nadeem Babar, Special Assistant to Prime Minister (SAPM) on Petroleum stated that the perception that Federation wants to curtail the gas of Sindh Province is completely wrong. Federal Government is taking all steps and measures to provide gas across Pakistan to cater the national demand and supply.

The recent gas pressure problems were faced by the industries of Karachi due to maintenance face of two major gas fields. Government is running all gas fields at the maximum level. Existing Gas reserves under utilization are heading towards depletion and there is a dire need for new exploration on which the Government is dedicatedly working, meanwhile, the shortfall shall be met through providing imported LNG.

To address the gas shortfall, RLNG is the only solution under present circumstances. The Government in view of the situation has been providing RLNG connection to the industrial and commercial consumers both in South and North.

Federal Minister for Energy (Petroleum & Power) and Special Assistant to Prime Minister (SAPM) on Petroleum patiently heard to the problems and issues briefed by Zubair Motiwala, Chairman and Jawed Bilwani, Chief Coordinator of Council of All Pakistan Textile Associations (CAPTA). They appreciated that the recovery from industries are 100%, therefore, industries deserve priority.

The demand of industries to ban the domestic indigenous gas connections to provide gas to industries is debatable and requires consensus in the Parliament. However, Government is also working to provide alternative solutions in this regard. They gave instant directives to the Deputy Managing Director (Operations) and Acting Deputy Managing Director (UFG) as follows:

  1. To apply reduced tariff of gas to zero rated consumers without condition FBR’s Certificate by SSGC and K-Electric for complete textile chain.
  2. Reinforced new gas pipeline shall be laid within two months in the SITE Industrial Area to resolve gas pressure problem faced by industries in SITE. The industry will provide the pipelines.
  3. To immediately process the pending applications of new industrial connections of RLNG of the zero rated consumers.
  4. All consumers who have received notices for removal of extra load would be examined on case to case basis and those who have paid security deposit as per load will be regularized.
  5. All those connections which have been curtailed in terms of load by SSGC from the supply line would be brought back to original position and remove the ring installed to control the gas pressure and wherever there is requirement of change of meter same would be done on priority basis.
  6. It was also declared that new tariff of zero rated consumers is for the period of five months only and shall be reverted back from 1st March, 2021. Concluding the meeting, they assured that the doors of the ministry are open for industries to discuss their issues and problems. They invited the delegation of Zero Rated Sector to visit Islamabad for further discussions in detail.
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