Domestic natural gas supply to the power sector is expected to at least double by the end of the current month to minimise tariff hikes and loadshedding, which have become inevitable following the non-availability of imported liquefied natural gas (LNG) and upcoming hike in summer consumption.
Informed sources told that arrangements were being made on a war footing to increase gas supply to around 160-170 million cubic feet per day (mmcfd) by end-April or early May, up from about 85-90mmcfd at present. An additional 20-25mmcfd could be diverted from the CNG sector, provided the government is able to sustain political pressure.
Gas supplies to the fertiliser sector would be protected as far as possible, alongside vigilance on stocks due to a wide price gap between locally produced urea at Rs4,500 per bag and imported one at Rs15,000 per bag, creating a scope for smuggling.
However, fertiliser plants may not receive uninterrupted gas and could be operated on an alternate basis to meet demand for both the current and next seasons.
Minister’s warning
Sources said Power Minister Awais Ahmad Khan Leghari, at a recent meeting of the special cabinet committee on petroleum prices and supplies, warned that unless additional gas was diverted to the power sector to replace LNG, fuel costs in electricity tariffs could rise exponentially or result in massive loadshedding. His ministry suggested diverting supplies from residential consumers, CNG or fertiliser.
Some ministers reminded that diverting gas from domestic consumers could cause a political backlash, affecting more than seven million users.
“It is a choice between the uproar of 7m gas consumers or 30m power consumers,” an official quoted the power minister as telling the cabinet committee. The only alternative fuel for domestic use, particularly cooking, is liquefied petroleum gas (LPG), whose prices have surged to more than double the rates set by the Oil and Gas Regulatory Authority due to weak enforcement.
