Gas crisis

Winter is here in full swing – and with it, the now traditional winter greeting of low gas supply. At a time when domestic gas supply is essential in all parts of the country, Pakistan’s gas troubles peak. This annual tradition has not changed under the PTI government, which – like other governments – did not have a plan in place for the spike in gas demand during winter, something which should be relatively straightforward to do. It is only when public complaints began to accumulate that the federal cabinet met to decide how to stop the ongoing gas shortage in the country. The government has come up with a plan, which remains rather low on detail. An uninterrupted supply of gas has been promised to domestic, commercial and industrial consumers; and a ban on the import of furnace oil has also been proposed.The PM has asked gas companies to ensure accurate estimations of demand and supply to avoid both scheduled and unscheduled gas outages. This is one part of the gas enigma, which previous governments have also attempted to solve. Promises have always been made, but the reality has remained different regardless of which party has been in power. In keeping with successive government representatives, the current petroleum minister, Ghulam Sarwar Khan, also chose last week to deny the existence of gas loadshedding in the country. This is despite gas loadshedding complaints coming in from all parts of the country, including Karachi where parts of the industrial areas have announced a shutdown of factories on Sunday due to the gas crisis in the city.The strategy on offer does not look different to the ones that have come before it. Gas supply will be curtained to the CNG and captive power sector. The government has also notified a ban on the import of furnace oil, and is looking to move the generation of electricity to LNG and coal in the future. This will require ensuring that the gas supply chain remains efficiently run, which has not traditionally been the case. Pakistan has not built the TAPI or Iran gas pipelines, which were to supply cheap gas. Instead, the country remains reliant on the more expensive LNG. The anger about gas shortage will also be higher this time due to the recently jacked-up (by over 40 percent) gas prices. If service delivery is not going to be better, then why should consumers pay more for gas? The minutes of the cabinet meeting suggest that the import of LNG remains erratic, with no clear plan for how it corresponds to supply and demand. The government will need to do more than make promises.

from The News International - Editorial http://bit.ly/2EU5FE0