ahlam1399
12-21-2019, 12:20 PM
ISLAMABAD: Miscalculation of top mandarins of Petroleum Division and gas companies about import of LNG has led to ga as crisis in the country, causing the export and general industry and CNG sector in Punjab and Sindh to come to a standstill. So much so, the gas supply to the domestic sector in the Punjab and KP with a new low in temperature is not up to the mark, rather most of areas are facing zero pressure.
Before the arrival of winter season, the government officials and special adviser to PM on petroleum claimed again and again that this winter there will be no gas load shedding and to this effect they had carved out the required strategy. However, now the ground reality speaks otherwise and low gas pressure is reported in Lahore for 12 hours in some pockets and some are facing zero supply.
The same situation is being faced by some areas of Rawalpindi and its suburbs, while Gujrat, Faisalabad and South Punjab are also facing low gas pressure. A Petroleum Division official said under the ECC decision, both Sui Northern and Sui Southern were authorized to go for gas load management on their own and claimed that there was no shortage of gas but the low pressure was there in some pockets of the jurisdiction of Sui Northern. To a question, he said line pack stood at 3.8 BCF (Billion Cubic Feet).
Meanwhile, the All Pakistan Textile Mills Association (APTMA) wrote a letter to Special Adviser to the Prime Minister on Petroleum (SAPM) Nadeem Babar on Friday, a copy of which is available with The News, informing him that the Sui Northern had also exposed the export sector to gas shortage because of which export orders will not be met.
The letter written by Shahid Sattar, Executive Director to APTMA, to Nadeem Babar says: “This is to bring to your notice that the SNGPL is issuing public notices and notifications that gas will not be curtailed to the export-oriented industry. Reality is that the industry across Punjab is not being able to operate as gas pressures are extremely low since 9am on December. We would be grateful to fix the gas pressure issue at the earliest so that industry may keep operating.”
However, top sources say the stakeholders in the Sui Northern and Sui Southern wanted to give a tough time to the government, as they are unable to recover Rs19 billion against the RLNG which was injected in the domestic sector in last winter, and now the government wanted more supply of RLNG in domestic sector to avert the political backlash, but the private sector having too much stakes in gas companies in shape of shares wanted the payment of RLNG usage in domestic sector as part of gas tariff price, which Ogra does not want to make.
Official documents available with The News reveal that the domestic sector has become one of the biggest clients of RLNG in the country and this winter the costly RLNG of 1.362 billion cubic feet is once again being injected to avoid load shedding in four months of winter season but diversion of gas to domestic consumers will damage the financial health of gas companies and the loss will cause more surge in circular debt of about Rs108 billion.
Sui Northern has emerged as the biggest victim of circular debt in the LNG sector as its payables to Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) have soared to Rs108 billion. Last year, the cost of RLNG amounting to over Rs19 billion has not yet recovered.
And if this time the government injects the costly RLNG amounting to Rs54.5 billion as worked out by the Petroleum Division officials, then over Rs30 billion will not be recovered as 40 percent of RLNG cost will be recovered in next summer season because of gas swap mechanism.
The unrecovered cost of RLNG amounting to Rs30 billion will appear in the circular debt in LNG sector which will further jack up circular debt to over Rs138 billion.
Official sources claim that stake holders in both the companies wanted the government to pay billions of rupees for the loss incurred because of diversion of RLNG to domestic sector or make it part of gas tariff. Officials responded, saying the government does not want to make it part of tariff as it will because a permanent feature in the tariff.
Meanwhile, Chairman All Pakistan CNG Association Ghiyas Paracha told The News that gas shortage was a result of inefficiency of Sui Northern. He also criticized the decision of Ogra to increase gas tariff saying it will lead to closure of CNG stations as expensive LNG was being provided to the low tariff sector.
Mr. Paracha emphasised that the CNG stations had given up on cheap local gas and switched over to expensive RLNG, as they had been assured of continuity of supplies.He said 1,100 CNG owners had deposited Rs12 Lakh per station as advance payment in order to ensure continuous supply of gas but after depositing billions in the government kitty, the CNG sector had been once again deprived of imported gas whereas the same gas was being provided to the low tariff sectors.
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Before the arrival of winter season, the government officials and special adviser to PM on petroleum claimed again and again that this winter there will be no gas load shedding and to this effect they had carved out the required strategy. However, now the ground reality speaks otherwise and low gas pressure is reported in Lahore for 12 hours in some pockets and some are facing zero supply.
The same situation is being faced by some areas of Rawalpindi and its suburbs, while Gujrat, Faisalabad and South Punjab are also facing low gas pressure. A Petroleum Division official said under the ECC decision, both Sui Northern and Sui Southern were authorized to go for gas load management on their own and claimed that there was no shortage of gas but the low pressure was there in some pockets of the jurisdiction of Sui Northern. To a question, he said line pack stood at 3.8 BCF (Billion Cubic Feet).
Meanwhile, the All Pakistan Textile Mills Association (APTMA) wrote a letter to Special Adviser to the Prime Minister on Petroleum (SAPM) Nadeem Babar on Friday, a copy of which is available with The News, informing him that the Sui Northern had also exposed the export sector to gas shortage because of which export orders will not be met.
The letter written by Shahid Sattar, Executive Director to APTMA, to Nadeem Babar says: “This is to bring to your notice that the SNGPL is issuing public notices and notifications that gas will not be curtailed to the export-oriented industry. Reality is that the industry across Punjab is not being able to operate as gas pressures are extremely low since 9am on December. We would be grateful to fix the gas pressure issue at the earliest so that industry may keep operating.”
However, top sources say the stakeholders in the Sui Northern and Sui Southern wanted to give a tough time to the government, as they are unable to recover Rs19 billion against the RLNG which was injected in the domestic sector in last winter, and now the government wanted more supply of RLNG in domestic sector to avert the political backlash, but the private sector having too much stakes in gas companies in shape of shares wanted the payment of RLNG usage in domestic sector as part of gas tariff price, which Ogra does not want to make.
Official documents available with The News reveal that the domestic sector has become one of the biggest clients of RLNG in the country and this winter the costly RLNG of 1.362 billion cubic feet is once again being injected to avoid load shedding in four months of winter season but diversion of gas to domestic consumers will damage the financial health of gas companies and the loss will cause more surge in circular debt of about Rs108 billion.
Sui Northern has emerged as the biggest victim of circular debt in the LNG sector as its payables to Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) have soared to Rs108 billion. Last year, the cost of RLNG amounting to over Rs19 billion has not yet recovered.
And if this time the government injects the costly RLNG amounting to Rs54.5 billion as worked out by the Petroleum Division officials, then over Rs30 billion will not be recovered as 40 percent of RLNG cost will be recovered in next summer season because of gas swap mechanism.
The unrecovered cost of RLNG amounting to Rs30 billion will appear in the circular debt in LNG sector which will further jack up circular debt to over Rs138 billion.
Official sources claim that stake holders in both the companies wanted the government to pay billions of rupees for the loss incurred because of diversion of RLNG to domestic sector or make it part of gas tariff. Officials responded, saying the government does not want to make it part of tariff as it will because a permanent feature in the tariff.
Meanwhile, Chairman All Pakistan CNG Association Ghiyas Paracha told The News that gas shortage was a result of inefficiency of Sui Northern. He also criticized the decision of Ogra to increase gas tariff saying it will lead to closure of CNG stations as expensive LNG was being provided to the low tariff sector.
Mr. Paracha emphasised that the CNG stations had given up on cheap local gas and switched over to expensive RLNG, as they had been assured of continuity of supplies.He said 1,100 CNG owners had deposited Rs12 Lakh per station as advance payment in order to ensure continuous supply of gas but after depositing billions in the government kitty, the CNG sector had been once again deprived of imported gas whereas the same gas was being provided to the low tariff sectors.
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