Pakistan natural gas crisis – Energy Sector Update 2012

Pakistan natural gas crisis – Energy Sector Update 2012

Lahore – Pakistan is facing its worst energy crisis since its birth in1947. The country lacks proper natural resources management, thanks to incompetent ruling parties that have been not able to improve infrastructure and production
facilities even after sixty four years of independence.

It has been learnt from very reliable sources that Pakistan’s two main gas supplying companies; Sui Northern Gas Private Limited (SNGPL) and Southern Sui Gas Limited (SSGL) are struggling to meet its financial demands for the year
2011. Both gas provision bodies are accountable for loss worth billions of Rupees. The reason for this consistent financial disarray is considered to be gas theft from the pipelines and inability to find the loop holes in their governing systems.

Both firms have decided to take actions to recover the damage by dropping a bomb on the consumers in form of additional charges per unit of gas used. The federal government has already agreed to increase the gas tariffs in order
to make up for the financial damage that has been caused due to incompetency and miss management in both organisations.

Pakistan is already looking to add to its current electricity sources by importing more gas from Iran. The government has ordered the OGRA (Oil and Gas Regulatory Authority) to import gas from Iran to meet the challenges of demanding
winter season. The general public and manufacturing industries are suffering from either high electricity prices or continuous load shedding.

A number of multinational companies have already decided to pack up their bags and shift their production houses to a safer and certain environment. Textile industries such as Gul Ahmad Fabrics have moved their plants to countries
like Bangladesh to minimize their annual financial loss. Even oil and gas designing companies such as Speciality Process Equipment Corporation and Descon Pvt Limited have moved their businesses to secure places like Dubai.

It is the sole responsibility of federal government to come up with decent plan to secure further foreign investment and bring the businesses back to Pakistan. However, above all, the ruling party needs to come up with a special
rescue plan to ensure continuous provision of gas and electricity to fertilizer, chemical and oil and gas industries.

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Posted by Ahmed Tariq on May 29 2012. Filed under Pakistan, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry