January 12, 2008	Saturday	Muharram 02,1429

KARACHI, Jan 11: Despite widespread complaints from gas consumers, the Sui Southern Gas Company (SSGC) on Friday claimed it was not resorting to load-shedding in its franchise areas of Sindh and Balochistan.

The managing director of the SSGC, Azim Iqbal Siddiqui, also had a word of caution for the consumers in Karachi, where gas consumption has surged from 200 million cubic feet (mcf) to 800mcf, more than the combined consumption of Lahore, Faisalabad and Gujranwala. He disclosed that by 2010 gas consumption in the city would cross one billion mcf.

The SSGC chief was speaking at a news briefing amid complaints of poor gas supply in many areas. Mr Siddiqui advised the consumers to get regulators and thermostats of their appliances checked to ensure there was no gas leakage so as to conserve energy.

He said that the SSGC had suffered considerable losses in the aftermath of the assassination of the PPP chairperson, Benazir Bhutto, yet the gas company managed to ensure that there was no shortfall in its commitments as it continued to provide 100 per cent supply of natural gas to domestic, commercial and industrial consumers.

He said that the overall demand in the city had shot up to 800mcf from the normal 600mcf. Yet the city continued to get sustained supply of gas, he said, adding that around 26mcf of gas was consumed by the CNG outlets and about 50 more gas stations were in the pipeline.

The SSGC chief said that the company had implemented an effective load management plan that involved arrangements with the KESC, Pakistan Steel Mills and Fauji Fertilizer to continue injecting them with additional volumes of gas.

However, sources said that the low pressure in many of the SSGC franchise areas was also caused due to the diversion of around 200mcf to the Sui Northern Gas Company (SNGC).

He also informed the newsmen that the company was supplying gas through fields in Bhit and Zamzama as well as re-routing additional supply from other piping systems.

Mr Sidddiqui said that the gas demand always increased during winters particularly in the domestic sector. He pointed out that the SSGC normally supplied 15mcf gas to Quetta during the summer season, but had to pump in 96mcf this winter which was the highest ever supply of gas ever injected there.

New pipeline in Balochistan

He said that the SSGC was laying a new pipeline in Balochistan that would help it to supply 130mcf gas to Quetta while the strategically located gas filed in Zarghun would help the gas company to inject gas to load centers of Quetta, Ziarat and other adjoining areas. An agreement had already been signed for the supply of 150mcf from the Zamzama field. Mr Siddiqui stressed the need to conserve energy for future generations. He pointed out that if consumers adhered strictly to energy conversation, they would also save money. He also said that Pakistan could have done well by following the daylight savings system which was common in the west.

LNG project

Speaking about the use of liquefied natural gas (LNG), which is considered a future source of energy, he said that the SSGC was willing to take 10 per cent equity.

Coming on to the Mashal LNG project, Mr Siddiqqui said that the SSGC would not import LNG; it would be done through a consortium. Proposals of Shell, which controlled 60 per cent of the portfolio, and Fauji Foundation were also under consideration, he said.

Pakistan’s gas demand and supply projections indicate a widening gap of approximately 500 million cubic feet per day (MMFCD) by the year 2010. The gap started to emerge in 2007-08 and builds up to 2,100MMFCD by 2015, as the current gas fields gradually go off plateau.

Any commitments of additional gas supplies to industries, power or fertilizer plants on a long term basis are therefore not possible, without confirmation of additional sources of gas supply. This may be possible through an import gas pipeline which at the earliest could come on-stream by 2015 as per the Gap Coverage Strategy or alternately a major on-shore / off-shore gas field discovery in the current year (the gas to market period being five years). A third alternate is the LNG import option which by current assessment will be able to provide gas by the year 2010/11.

To this end GOP has nominated SSGC as the project facilitator for the establishment of 3.5 million tonnes per annum (mtpa) (equivalent to 500MMFCD of gas) LNG import project with a re-gasification facility to be located in the vicinity of Karachi. It is estimated that the gas would be available through LNG import in the year 2010/11.

To date, the SSGC and its consultant have completed a pre-feasibility study (the concept report) covering business, technical, commercial, legal and other issues concerning LNG import, and have also provided input on Pakistan’s LNG policy including an LNG policy workshop. The SSGC and its consultant have conducted prequalification of interested project developers, and have issued a formal request for proposals.