No gas for industries in Punjab until further order: SNGPL

No gas for industries in Punjab until further order: SNGPL

Thursday, December 29: Sui Northern Gas Pipelines Limited (SNGPL) has ordered gas suspension for all industries of Punjab until any further order. According to a notification issued by the company, the verdict was passed in order
to provide the gas to its domestic consumers.

According to SNGPL, due to a country-wide gas shortfall the company is currently facing a deficit of 700 mmcfd. Company officials say that the total demand on the SNGPL network is 2,600 mmcfd and the supply is about 1,900 mmcfd.

SNGPL is still waiting for instructions from the Ministry of Power and natural Resources on how to manage the gap but in the meantime has planned to shut down the industry in Punjab indefinitely. The company has also planned to
disconnect gas to all CNG stations of Punjab from next month if the situation persists, however the final decision would be taken with the compliance of the ministry.

As per a commendable source within SNGPL, the gas line Pack (gas pressure in the pipe line) had come down to 2,600 mmcft which has forced the company to take this decision. He said that if the pressure drops to 2,500 the entire
system will collapse and it takes a week to revive it.

The gas pressure for domestic consumers on the other hand was also observed to be low in most parts of the provincial metropolis. The company held CNG stations responsible for this. The domestic consumers have a total demand of
650 Mmcft gas and is provided with almost the same demand. The general industry demands 440 Mmcft of gas and was provided with only 250 Mmcft gas. Similarly Textile industry has total demand of 210 Mmcft and was provided with 120 Mmcft gas. Fertilizer sector
requires 240 Mmcft gas and is provided with 175 Mmcft of gas. CNG sector requires 325 Mmcft gas and was provided with 260 Mmcft gas.

However, the fertiliser sector will be provided with gas as per the agreement. If they disconnect gas to fertiliser sector then it would be contempt of court.

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Posted by Wajahat Javed on Dec 30 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