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Domestic consumers to receive gas eight hours a day in winter

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  • Gas will be provided 3 hours in morning, 2 at noon, 3 at night. 
  • PM desired domestic consumers should be kept on top priority.
  • Commercial consumers to be provided RLNG in Punjab: official. 

ISLAMABAD: The government has decided to adjust the gas load management plan under which domestic consumers will receive gas for eight hours a day for cooking times in winter, The News reported Friday. 

The consumers will be provided gas in the morning from 6am to 9am, two hours from 12 noon to 2pm for lunch and three hours from 6pm to 9pm for dinner.

“More importantly, commercial consumers will be provided RLNG in Punjab except for roti tandoors, which will be provided system gas (local gas),” one of the top officials of the Energy Ministry told The News.

“The CNG, fertiliser, cement and non-export industry will be having zero gas supply,” said the official. “If the winter season peaks from December 15 to January 31, the gas supply may be cut off to captive power plants of the export industry and for the power sector, the existing gas supply of 200 mmcfd may be halved.”

He said the gas deficit in the country for the winter season 2022-23 has been worked out at 1.35 bcfd (billion cubic feet gas per day). “It has been worked out that the gas deficit would stay at 900-1,000 mmcfd in the SNGPL system that covers Punjab and KPK. 

The gas availability in the SNGPL system would remain in the range of 1,520 mmcfd (770 mmcfd of local gas plus 750 mmcfd of RLNG) against the demand of 2,100-2,500 mmcfd. The gas consumers in SNGPL stand at 7.5 million (6.5 million in Punjab and 1 million in KPK).”

Likewise, the gas availability in the Sui Southern (SSGCL) system would be in the range of 925-1,000 mmcfd against the demand of 1,250-1,500 mmcfd. The gas deficit in the SSGC system has been estimated in the range of 250-350 mmcfd. 

The gas supply to the CNG, fertiliser, cement, and non-export industries will be zero.

The Petroleum Division has also sought the amount of Rs105 billion for injecting the costly RLNG into the domestic sector for the winter season 2022-23. 

Prime Minister Shehbaz Sharif has desired that domestic consumers should be kept on top priority and should be provided gas with pressure. And this is only possible if RLNG is diverted to domestic consumers of Punjab and KPK.

Interestingly, the cost of RLNG, which was earlier diverted to domestic consumers in the last four winters, has not been recovered. The cost of RLNG that has so far been injected into the domestic sector stands at Rs108 billion and this amount has not been recovered. The country’s gas sector is already soaked in circular debt of Rs1,500 billion. The Petroleum Division would put up this case before the premier for approval of Rs105 billion to ensure the diversion of RLNG so that gas to domestic consumers could be provided for cooking times at required pressure.

“Currently, the sale price of natural gas stands at Rs400 per MMBTU whereas the RLNG cost is at $13 per MMBTU (Rs3,100). The Petroleum Division wants the differential to be paid by consumers through the revenue requirements of gas utilities.”

Under the amended act, RLNG is no longer called a petroleum product but has been renamed as a gas of which the cost can now be recovered from domestic consumers through revenue requirement petitions of Sui Southern and Sui Northern.

The gas supply to captive power plants of export sectors would also be shut down if winter turns more severe. Right now, the captive power plants are being provided 50%  gas supply. However, for processing in the textile sector, the gas of 40-42 mmcfd would continue. 

The government is extending electricity at the rate of Rs19.99 per unit, which is why it would halt the gas supply to captive power plants. Right now the power sector is currently being provided 165-200 mmcfd of gas, which would be halved during the peak winter.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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