New plant will supply gas to KESC in four months’ time

Dr. Asim Hussain, Minister of Petroleum and Natural Resources, has finally announced that a new dedicated liquefied petroleum gas-air mix plant will be supplying gas to Karachi Electric Supply Company (KESC) in the coming four
months’ time. The new plant will provide 100MMCFD gas per day to meet the needs of KESC and will greatly help in smoothing out the electric shortfall in the region.

In a news conference held in Karachi on Monday, Hussian told the reporters that Sui Southern Gas Company (SSGC) has established the new plant at Bin Qasim to overcome the gas shortfall to the power generating company. The plant
will be fully operational in next three to four months and will prove a vital role in the curtailment of electricity load shedding on both domestic and industrial levels.

The minister further told that KESC installation process of a 600-megawatt power plant is already underway at KESC to catch up the ever increasing demand of electricity in the industrial sector. Hussian cited that the government
would persuade the LPG (Liquefied Petroleum Gas) in the transport vehicles and is already working on lifting off sales tax to bring down the LPG process closer to the CNG, petrol and diesel. Some incentives will also be given by the government to the LPG dealers
to curtail the prices.

Hussain told the press reporters that SSGC was suffering from a 150MMFCD shortage of gas and for this reason, gas supplies to KESC, CNG stations and industrial sector was curtailed. The management has devised a new distribution
plan under which the CNG stations will be closed for two days, while the industrial sector will suffer a closure of one day a week from now onwards.

The minister told that government would encourage the consumers for the use of LPG rather than CNG in transport vehicles and commercial use. This can only be done if the LPG prices are brought down to a level where it becomes feasible
for the consumers to buy it as an alternate to the CNG. Hussian said that keeping in view the high price of the LPG, the government would subsidize it for the domestic consumers and operators of the public transport

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Posted by Farhan Hameed on Dec 19 2011. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry