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In the name of Allah, The Most Beneficent, The Most Merciful   1
NATIONAL INSTITUTE OF MANAGEMENT, ISLAMABAD
                    14th Mid Career Management Course

                     Current Issue Presentation
                                 on

        Impact of Diversion of Gas from
          Industrial to Power Sector

Presented by:            Bilal Khan Pasha, Commerce & Trade Group
Sponsor DS:              Mr. Javaid Iqbal


November 28, 2012
                                                                    2
Sequence of Presentation

o Statement of Problem

o Introduction & Genesis of Issue at hand

o Broad Contours of the Issue

o Problems & Challenges

o Analysis

o Results & Future Scenario

o Conclusion

o Recommendations

o Questions & Answers                       3
Statement of Problem



The diversion of precious and scarce natural Gas resource from
   Industrial to Power Sector in Pakistan has resulted in the
   emergence of sharp divisions amongst Power Producers,
Industries and Consumers – A case of Catch-22 for the Federal
                         Government


                                                                 4
Sources for Presentation

o Economic Survey of Pakistan 2011-12
o Pakistan Energy Year Book 2011-12
o Ministry of Petroleum & Natural Resources
o Ministry of Industries
o Ministry of Production




                                              5
Sources for Presentation

o Planning Division
o Oil & Gas Regulatory Authority (OGRA)
o All Pakistan Textile Mills Association (APTMA)
o Karachi Electricity Supply Company (KESC)
o International Energy Agency (IEA)




                                                   6
Natural Gas in Pakistan – Brief Facts
o Natural Gas – Gift of Nature & Precious Resource
o Use of Natural Gas
o According to IEA, global natural gas proven reserves are 300 trillion
  cubic meters
o Pakistan has proven reserves of 840 billion cubic meters (28 TCF) with
  an Annual Consumption of 40 billion cubic meters (1.3 TCF)
o No uniform international natural gas prices


                                                                     7
Pakistan’s Primary Energy Supplies
                                              2011-12

                                         65 Million TOE
                                             Natural Gas
            Value of Natural Gas: $4.3         50.5%
            billion
            (4 BCFD)


                                                                           Value of Coal
                                                                           Local: $ 0.2 billion
                                                                           Imported: $ 0.5 billon

                                                                         Coal
                                                                         6.3%
Value of Local Crude: $2.4 billion
(67,000 Barrel/Day)
                                                                 Electricity
Oil Import Bill: $14.5 billion        Oil                          12.5%
(36% of total imports)               30.7%
(380,000 barrels/Day)                                   Source: Economic Survey of Pakistan 2011-12
                                                                                                      8
Pakistan’s Natural Gas
                Infrastructure
                                                                    Peshawar


Consumers: 6.7 Million (1.6 million)
Transmission Network: 11,045 Km (879Km)                                        Islamabad
Distribution Network: 128,758 Km (38,828 Km)
No. of Cities/Towns on gas: 307
No. of Villages on gas: 4,989

                                                                                 Lahore
                                                           Faisalabad
                           Quetta




                                                           Multan

                                              Sui
                                                AC1X-SUI




                                                                                               GAS FIELDS (156)
                                     Sukkur

                                                                                               SSGC LINES

                                                                                               SNGPL LINES

                                                                                               COMPRESSOR
                                                                                               STATIONS (17)

                                                                         Source: Ministry of   MAJOR LOAD
                           Karachi                                      Petroleum & Natural
 9
                                                                             Resources
                                                                                               CENTRE (5)
Province Wise Gas Supply and Consumption
                                          (2011-12)
          10
                MMCFD
               Gas Supply: 3,862 MMCFD               Gas Consumption: 3,511 MMCFD
                           Punjab
                            182
                             5%                     Baloch.                  [CATEG
Baloch.                                               242                      ORY
                                          KPK
 667                                      360         7%                     NAME], [
 18%                                      9%                                 VALUE],
                                                                              43.6%




                                                 Sind, [V
                                                 ALUE], 4                  KPK
                                                   4.5%                    175
                                    Sind, [VAL
                                                                           5%
                                    UE], [PERC
                                    ENTAGE]
          Source: MPNR
                                                                               10
Province Wise Gas Supply and Consumption
                         (2011-12)
   11

                 Gas Supply          Gas Consumption

Province MMCFD          % share   MMCFD        % share

 Punjab         182      4.7 %       1531      43.6 %

  KPK           362      9.4 %        175       5.0 %

  Sind          2649    68.6 %       1563      44.5 %

 Baloch.        669     17.3 %        242       6.9 %

  Total         3862     100 %       3511       100 %
 Source: MPNR                                            11
Province Wise Gas Consumers
12
                  as on 30.06.2012
                         SNGPL                  SSGCL
     Province /
       Type          Punjab    KPK     Sindh Balochistan       Total

Domestic            3,594,937 516,871 2,239,731   223,853    6,575,392

Commercial           47,149    8,757   22,296      2,200      80,402

Industrial           5,798      830     4,077        56       10,761


 Total              3,647,884 526,458 2,266,104    226,109   6,666,555

     Source: MPNR
                                                                       12
Sector Wise Gas Consumption
                                   (2011-12)
       [CATEGORY         Gas Consumption - 3,511 MMCFD     [CATEGORY
       NAME], [VALUE],                                   NAME], [VALUE],
       [PERCENTAGE]                                      [PERCENTAGE]




         [CATEGORY
       NAME], [VALUE],
       [PERCENTAGE]




         [CATEGORY                  [CATEGORY              [CATEGORY
       NAME], [VALUE],            NAME], [VALUE],        NAME], [VALUE],
       [PERCENTAGE]               [PERCENTAGE]           [PERCENTAGE]      13
Source: MPNR
Gas Demand & Supply Projections
        8,000                                    Demand
        7,000
        6,000
        5,000
MMCFD




        4,000
        3,000
        2,000
        1,000
            0
            2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21


        Source: MPNR
                                                                                         14
Measures to Augment Gas Supplies (Imports)
             Project          Volume (MMCFD)   First Flow
Transnational pipelines
Iran-Pakistan                      750           2015
TAPI                              1,325          2016
                                  2,075
Liquefied Natural Gas (LNG)
Fast Track                         200         June-2013
Long Term-1                        400         Q1-2015
Long Term-2                        400         Q2-2015
                                  1,000
LPG Air-Mix (SNG)
SSGC                               100         Q2-2013
SNGPL                              150         Q3-2013
                                   250
Total                             3,325        Source: MPNR   15
Gas Allocation and Management Policy, 2005
S.No                        Category of Consumers                              Priority
 1.    Domestic and Commercial Sectors                                           First
       I) Fertilizer Sector; and
 2.                                                                            Second
       II) Industrial Sector to the extent of their process gas
       Independent Power Plants as well as WAPDA and KESC’s
 3.                                                                             Third
       Power Plants having firm gas supply commitment under GSAs
       General Industrial, CNG Sector and Captive Power Producers
 4.                                                                            Fourth
       of export oriented Textile Industry
       I) WAPDA’s and KESC Power Plants other than those listed
 5.        against S.no. 3 above                                                Fifth
       II) Captive Power Sector
 6.    Cement Sector                                                            Sixth
      There is no gas load management in Khyber Pakhtoonkhwa and Balochistan    16
Current Load Management
Presently, following curtailment policy is being observed:-

• Two gas holidays per week are being observed by Industrial Sector
• Three gas holidays per week are being observed by CNG sector
• No curtailment in any sector in KPK in light of decision of
Peshawar High Court under Article 158 of the Constitution

• No curtailment in the Domestic and Commercial sectors


                                                                  17
Why the Use of Gas So Desirable ?
                   Industry incl. Fertilizer
                       Feedstock for
                       manufacturing
                   Only raw material for
                        production
                   Optimal use of scarce
Power Sector            resource                    Domestic
                                                   Consumers
  Cheap fuel
                                               Uninterrupted power
Assured Supplies
                                               Cheap fuel for heating
                                                 & transportation



                       Natural
                        Gas

                                                                        18
Gas Sale Prices Effective from July 1, 2012
                                                                                   Final
A. Domestic Sector         Monthly consumption Level         Sale Prices   Cess    Price
      Slab             Cubic Meter            MMBTU          Rs/MMBTU       Rs/MMBTU
       1st                0-100              0 - 3.5494         100         -      100
       2nd               101-300          3.5495 - 10.6482      200         -      200
       3rd               301-500         10.6483 - 17.747       500         -      500
                         501-700         17.7471 - 24.8458      500         -      500
  Bulk Domestic                                                 500         -      500
B. Commercial Consumer                                          600         -      600
C. Industry including Captive                                   460        50      510
D. Power (WAPDA/KESC)                                           460        100     560
E. Independent Power Plants (IPPs)                              460        100     560
F. Cement                                                       700         -      700
G. CNG
    Zone-1 (KPK, Baluchistan & Potohar Region                  618.5       263.6   882.1
    Zone-2 (Sindh & Punjab (Excluding Potohar))                618.5        200    818.5
H. Fertilizer-Feed Stock
  Old Plants                                                   116.3       197     313.3
  New Plants/Addl. Volume for BMR                               60.7        -       60.7
I. Direct Sales to WAPDA
  Kandhkot/Sara/Sui/Mari to Guddu                               460        100      560
                                                                                           19
 Source: OGRA
Diversion of Gas from Industrial to Power Sector

  • Gas is being supplied to Power Sector as per
    commitments of gas supply agreements.
  • During Energy Conference held in April 2012, it was
    decided to divert 207 mmcfd gas to Power Sector till
    September 2012 to address the severe electricity
    shortfall during summer.
  • The gas was diverted from Fertilizer Industry from
    SNGPL system.
  • However, the general Industry has agreement of gas
    supplies on nine months basis and will run on alternate
    fuels during winters.
                                                              20
Impact of Diversion of Gas from
  Industrial to Power Sector
       Power      Industrial
       Sector       Sector




                                  21
Impact of Diversion of Gas from Industrial to Power
                            Sector



               • Depleting gas                                 • Lack of committed                         • 90% industry




                                         Fertilizer Industry
                 allocation (504 to                              gas supply causing                          dependent on CPP




                                                                                        Textile Industry
Power Sector




                 337 BCF)                                        huge production                           • $ 14 billion
               • Higher                                          losses (2.7 million                         exports in 2011-12
                 dependence on                                   tons)                                     • Gas cuts causing
                 imported furnace                              • Import of                                   30% redundant
                 oil ($ 7 billion)                               fertilizers (Rs. 140                        production
               • High cost of                                    billion)                                    capacity
                 electricity & tariffs                         • A highly leveraged                        • 15 million
                 (Rs. 16/- per unit)                             industry (Rs. 150                           employed workers
               • Circular debt (Rs.                              billion)
                 300 billion +)
                                                                                                                              22
Issues in Gas Sector

• Natural decline in production of existing fields

• Heavy reliance on gas because of policy distortion

• Delays in import projects – LNG, IP, LPG

• Delays in linking new discovered fields with the supply
 network

• Massive and uneconomic expansion of distribution
 network in domestic sector
                                                            23
Issues in Gas Sector



• Unattractive economic and financial returns for the
 exploration companies

• Pricing of competing fuels

• Theft, sabotage and UFG

• Circular debt

                                                        24
Economic Evaluation of Natural Gas Use
                     • International
                       Resource
      Pakistan         Group + Asian
                       Development
 Integrated Energy     Bank +
       Model           Energy Wing
                       of Planning
                       Commission

                       Model to
                     examine the         • Setting up
                       economic            reference
                                           scenario for
                      impacts of           studying the
                     changing gas          energy mix of
                                           Pakistan
                        priority

                                       Gas has a higher
                                       economic value      • Simulation,
                                         for fertilizer      assessment
                                          production         and
                                                             conclusion
                                        compared to
                                        power sector
                                                                           25
Recommendations
   Expediting Import
     of Gas & Gas
      Exploration

          No Gas
      Allocation to
    Inefficient Power
          Plants


     Performance
    Audit of SSGC &
    SNGPL viz-a-viz
     Gas Allocation
         Policy


         Strict
     Adherence to
     Prioritization
         of Gas
      Allocations
                        26
We need an all-inclusive policy that
revitalizes every sector of the economy,
 not just a few individuals or industrial
groups. Fortunately, we have the solution
  to the present energy crisis. We only
  need our decision makers to take the
  right step now, before it is too late !


                                            27
Thank You

Questions & Answers



                      28

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Gas for Power Generation or for Industry - A case for Pakistan

  • 1. In the name of Allah, The Most Beneficent, The Most Merciful 1
  • 2. NATIONAL INSTITUTE OF MANAGEMENT, ISLAMABAD 14th Mid Career Management Course Current Issue Presentation on Impact of Diversion of Gas from Industrial to Power Sector Presented by: Bilal Khan Pasha, Commerce & Trade Group Sponsor DS: Mr. Javaid Iqbal November 28, 2012 2
  • 3. Sequence of Presentation o Statement of Problem o Introduction & Genesis of Issue at hand o Broad Contours of the Issue o Problems & Challenges o Analysis o Results & Future Scenario o Conclusion o Recommendations o Questions & Answers 3
  • 4. Statement of Problem The diversion of precious and scarce natural Gas resource from Industrial to Power Sector in Pakistan has resulted in the emergence of sharp divisions amongst Power Producers, Industries and Consumers – A case of Catch-22 for the Federal Government 4
  • 5. Sources for Presentation o Economic Survey of Pakistan 2011-12 o Pakistan Energy Year Book 2011-12 o Ministry of Petroleum & Natural Resources o Ministry of Industries o Ministry of Production 5
  • 6. Sources for Presentation o Planning Division o Oil & Gas Regulatory Authority (OGRA) o All Pakistan Textile Mills Association (APTMA) o Karachi Electricity Supply Company (KESC) o International Energy Agency (IEA) 6
  • 7. Natural Gas in Pakistan – Brief Facts o Natural Gas – Gift of Nature & Precious Resource o Use of Natural Gas o According to IEA, global natural gas proven reserves are 300 trillion cubic meters o Pakistan has proven reserves of 840 billion cubic meters (28 TCF) with an Annual Consumption of 40 billion cubic meters (1.3 TCF) o No uniform international natural gas prices 7
  • 8. Pakistan’s Primary Energy Supplies 2011-12 65 Million TOE Natural Gas Value of Natural Gas: $4.3 50.5% billion (4 BCFD) Value of Coal Local: $ 0.2 billion Imported: $ 0.5 billon Coal 6.3% Value of Local Crude: $2.4 billion (67,000 Barrel/Day) Electricity Oil Import Bill: $14.5 billion Oil 12.5% (36% of total imports) 30.7% (380,000 barrels/Day) Source: Economic Survey of Pakistan 2011-12 8
  • 9. Pakistan’s Natural Gas Infrastructure Peshawar Consumers: 6.7 Million (1.6 million) Transmission Network: 11,045 Km (879Km) Islamabad Distribution Network: 128,758 Km (38,828 Km) No. of Cities/Towns on gas: 307 No. of Villages on gas: 4,989 Lahore Faisalabad Quetta Multan Sui AC1X-SUI GAS FIELDS (156) Sukkur SSGC LINES SNGPL LINES COMPRESSOR STATIONS (17) Source: Ministry of MAJOR LOAD Karachi Petroleum & Natural 9 Resources CENTRE (5)
  • 10. Province Wise Gas Supply and Consumption (2011-12) 10 MMCFD Gas Supply: 3,862 MMCFD Gas Consumption: 3,511 MMCFD Punjab 182 5% Baloch. [CATEG Baloch. 242 ORY KPK 667 360 7% NAME], [ 18% 9% VALUE], 43.6% Sind, [V ALUE], 4 KPK 4.5% 175 Sind, [VAL 5% UE], [PERC ENTAGE] Source: MPNR 10
  • 11. Province Wise Gas Supply and Consumption (2011-12) 11 Gas Supply Gas Consumption Province MMCFD % share MMCFD % share Punjab 182 4.7 % 1531 43.6 % KPK 362 9.4 % 175 5.0 % Sind 2649 68.6 % 1563 44.5 % Baloch. 669 17.3 % 242 6.9 % Total 3862 100 % 3511 100 % Source: MPNR 11
  • 12. Province Wise Gas Consumers 12 as on 30.06.2012 SNGPL SSGCL Province / Type Punjab KPK Sindh Balochistan Total Domestic 3,594,937 516,871 2,239,731 223,853 6,575,392 Commercial 47,149 8,757 22,296 2,200 80,402 Industrial 5,798 830 4,077 56 10,761 Total 3,647,884 526,458 2,266,104 226,109 6,666,555 Source: MPNR 12
  • 13. Sector Wise Gas Consumption (2011-12) [CATEGORY Gas Consumption - 3,511 MMCFD [CATEGORY NAME], [VALUE], NAME], [VALUE], [PERCENTAGE] [PERCENTAGE] [CATEGORY NAME], [VALUE], [PERCENTAGE] [CATEGORY [CATEGORY [CATEGORY NAME], [VALUE], NAME], [VALUE], NAME], [VALUE], [PERCENTAGE] [PERCENTAGE] [PERCENTAGE] 13 Source: MPNR
  • 14. Gas Demand & Supply Projections 8,000 Demand 7,000 6,000 5,000 MMCFD 4,000 3,000 2,000 1,000 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Source: MPNR 14
  • 15. Measures to Augment Gas Supplies (Imports) Project Volume (MMCFD) First Flow Transnational pipelines Iran-Pakistan 750 2015 TAPI 1,325 2016 2,075 Liquefied Natural Gas (LNG) Fast Track 200 June-2013 Long Term-1 400 Q1-2015 Long Term-2 400 Q2-2015 1,000 LPG Air-Mix (SNG) SSGC 100 Q2-2013 SNGPL 150 Q3-2013 250 Total 3,325 Source: MPNR 15
  • 16. Gas Allocation and Management Policy, 2005 S.No Category of Consumers Priority 1. Domestic and Commercial Sectors First I) Fertilizer Sector; and 2. Second II) Industrial Sector to the extent of their process gas Independent Power Plants as well as WAPDA and KESC’s 3. Third Power Plants having firm gas supply commitment under GSAs General Industrial, CNG Sector and Captive Power Producers 4. Fourth of export oriented Textile Industry I) WAPDA’s and KESC Power Plants other than those listed 5. against S.no. 3 above Fifth II) Captive Power Sector 6. Cement Sector Sixth There is no gas load management in Khyber Pakhtoonkhwa and Balochistan 16
  • 17. Current Load Management Presently, following curtailment policy is being observed:- • Two gas holidays per week are being observed by Industrial Sector • Three gas holidays per week are being observed by CNG sector • No curtailment in any sector in KPK in light of decision of Peshawar High Court under Article 158 of the Constitution • No curtailment in the Domestic and Commercial sectors 17
  • 18. Why the Use of Gas So Desirable ? Industry incl. Fertilizer Feedstock for manufacturing Only raw material for production Optimal use of scarce Power Sector resource Domestic Consumers Cheap fuel Uninterrupted power Assured Supplies Cheap fuel for heating & transportation Natural Gas 18
  • 19. Gas Sale Prices Effective from July 1, 2012 Final A. Domestic Sector Monthly consumption Level Sale Prices Cess Price Slab Cubic Meter MMBTU Rs/MMBTU Rs/MMBTU 1st 0-100 0 - 3.5494 100 - 100 2nd 101-300 3.5495 - 10.6482 200 - 200 3rd 301-500 10.6483 - 17.747 500 - 500 501-700 17.7471 - 24.8458 500 - 500 Bulk Domestic 500 - 500 B. Commercial Consumer 600 - 600 C. Industry including Captive 460 50 510 D. Power (WAPDA/KESC) 460 100 560 E. Independent Power Plants (IPPs) 460 100 560 F. Cement 700 - 700 G. CNG Zone-1 (KPK, Baluchistan & Potohar Region 618.5 263.6 882.1 Zone-2 (Sindh & Punjab (Excluding Potohar)) 618.5 200 818.5 H. Fertilizer-Feed Stock Old Plants 116.3 197 313.3 New Plants/Addl. Volume for BMR 60.7 - 60.7 I. Direct Sales to WAPDA Kandhkot/Sara/Sui/Mari to Guddu 460 100 560 19 Source: OGRA
  • 20. Diversion of Gas from Industrial to Power Sector • Gas is being supplied to Power Sector as per commitments of gas supply agreements. • During Energy Conference held in April 2012, it was decided to divert 207 mmcfd gas to Power Sector till September 2012 to address the severe electricity shortfall during summer. • The gas was diverted from Fertilizer Industry from SNGPL system. • However, the general Industry has agreement of gas supplies on nine months basis and will run on alternate fuels during winters. 20
  • 21. Impact of Diversion of Gas from Industrial to Power Sector Power Industrial Sector Sector 21
  • 22. Impact of Diversion of Gas from Industrial to Power Sector • Depleting gas • Lack of committed • 90% industry Fertilizer Industry allocation (504 to gas supply causing dependent on CPP Textile Industry Power Sector 337 BCF) huge production • $ 14 billion • Higher losses (2.7 million exports in 2011-12 dependence on tons) • Gas cuts causing imported furnace • Import of 30% redundant oil ($ 7 billion) fertilizers (Rs. 140 production • High cost of billion) capacity electricity & tariffs • A highly leveraged • 15 million (Rs. 16/- per unit) industry (Rs. 150 employed workers • Circular debt (Rs. billion) 300 billion +) 22
  • 23. Issues in Gas Sector • Natural decline in production of existing fields • Heavy reliance on gas because of policy distortion • Delays in import projects – LNG, IP, LPG • Delays in linking new discovered fields with the supply network • Massive and uneconomic expansion of distribution network in domestic sector 23
  • 24. Issues in Gas Sector • Unattractive economic and financial returns for the exploration companies • Pricing of competing fuels • Theft, sabotage and UFG • Circular debt 24
  • 25. Economic Evaluation of Natural Gas Use • International Resource Pakistan Group + Asian Development Integrated Energy Bank + Model Energy Wing of Planning Commission Model to examine the • Setting up economic reference scenario for impacts of studying the changing gas energy mix of Pakistan priority Gas has a higher economic value • Simulation, for fertilizer assessment production and conclusion compared to power sector 25
  • 26. Recommendations Expediting Import of Gas & Gas Exploration No Gas Allocation to Inefficient Power Plants Performance Audit of SSGC & SNGPL viz-a-viz Gas Allocation Policy Strict Adherence to Prioritization of Gas Allocations 26
  • 27. We need an all-inclusive policy that revitalizes every sector of the economy, not just a few individuals or industrial groups. Fortunately, we have the solution to the present energy crisis. We only need our decision makers to take the right step now, before it is too late ! 27
  • 28. Thank You Questions & Answers 28

Notes de l'éditeur

  1. I am indebted to my sponsor DS Javaid Iqbal Sb who not only guided me but also clarified certain concepts.
  2. Sequence of presentation would be that I ll first highlight the issue at hand; its brief details; how and when it began; a holistic picture of the issue; associated problems; analysis of the present situation; results obtained so far and based on those results the future scenarios, followed by Conclusion substantiated by certain Studies carried out. I ll then present few recommendations and then of course Q&As
  3. Now that refers to the Catch 22 situation whereby the Govt either cannot or is not able to avoid the problem because of contradictory constraints. These are such situations in which solving one part of the problem only creates another problem which ultimately leads back to the original problem. In Persian its Na jayeraftan, napaye Mandan !This term was coined by Joseph Heller in his novel catch 22
  4. The short timeframe given for the presentation made me source more from the reading material and less from the interaction with concerned stakeholders. Nonetheless the sources are …..
  5. Gas is not found on large scales as that of Oil… only 90 countries of the world have proven reserves of gas and only 5 countries like Russia, Iran, Qatar, Turkmenistan and USA account for 60% of the world’s proven reserves.Use of Natural Gas are many since its popular use from 1930s onwards…Heating, Electricity, as a chemical feedstock in the manufacturing of plastics and other commercially important organic chemicals (i.e. ammonia, urea, phosphates, Teflon, etc.). Natural gas is also used in the manufacturing processof fabrics, glass, steel, paint etc.No uniform international natural gas prices – The price of natural gas varies greatly depending on location, type of gas and nature of end consumer.
  6. This map shows details of major gas fields (more than 100), pipeline network of SSGC and SNGPL.
  7. Power ; General Industry; Domestic, Fertilizer, Transport followed by Commercial. Ideally this distribution should ve been other way round with more gas allocation to the industry rather than domestic or even transport.The above includes about 800 MMCFD gas supply to Power and Fertilizer sectors directly from Mari, Kandhkot and Uch gas field.
  8. If we continue with existing rate of consumption showing on average 6% increase per annum, our local gas resources will be depleted by 2022-23 if we do not explore more sites and/or import gas. Our Demand Supply gap……. This projection includes IP, TAPI Gas pipelines and import of LNG from Qatar.
  9. These sources will be CRUCIAL to our economic survival. SNG is Synthetic Natural Gas as a substitute for natural gas…
  10. Before 2005 there was no policy for according priority to gas allocation for various sectors.. It was arbitrary in nature and haphazard… Gas Sales AgreementsWhen there is a huge demand of power and people feel that generating electricity is cheaper than purchasing it, captive power plants are made.
  11. Aik ANAR 100 Bemaar !
  12. Industry Bias is evident from the Gas Sale prices structure ! Cess is levied under Gas infrastructure Development Cess Act 2011.
  13. Besides committed gas supply to the power sector, in the aftermath of worst energy crises during early this year led to the holding of Energy Conference…. All stakeholders and Provinces were present….. Despite strong reservations of MPNR, it acted upon the decision….
  14. Although final data and statistics are yet to be released for showing any Improvement in Electricity generation from additional 207mmcfd by diversion from Fertilizer sector, yet we do have some provisional figures which show slight improvement in e generation and lesser imports of furnace oil from May-Sept 2012. However on the other side, our fertilizer industry is facing severe problems and is now on the verge of bankruptcy as informed by the fertilizer sector ppl… APTMA is also raising hue n cry as they r short of gas for their cpps… the industrial production related to gas have also made complaints to MPNR.
  15. A leveraged industry is the one which has the largest debt to equity ratio…
  16. Theses are the issues which we need to keep in mind while discussing the gas allocation strategy !
  17. UFG is Unaccounted For GAS; this is the difference between gas sales billed and gas sendout
  18. The actual results of the instant issue of diversion are yet to be computed and analysed, however, Last year Energy Wing of the PC in collaboration with ….. Carried out a study with the aim to determine the economic evaluation of natural gas use. The purpose was to examine the economic impacts of changing gas priority betwn fertilizer feedstock and power generation…
  19. Even the 207 mmcfd allocated gas could not be used fully by the power plants on account of their inefficiency…Why I put these recommendations in concentric circles is the need to adopt these as a package and not by piecemeal. It wont be of any use if either one or 2 are adopted and rest are overlooked; these all are interlinked and can be effective only if adopted in toto.