Staff Report
ISLAMABAD:
Gas supply to Captive Power Plants (CPPs) and Compressed Natural Gas (CNG) industry may be curtailed as the petroleum division has been considering ensuring supply of gas to the domestic consumers and export oriented sector during the peak winter 2021-22.
As per details, a meeting of the Cabinet Committee on Energy (CCOE) was held here under the Chairmanship of the Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Thursday.
During the course of CCoE’s meeting, the Petroleum Division presented the projected natural gas supply and demand position in the country for the coming winter during the meeting of CCoE.
During the meeting, Petroleum Division presented a detailed impact analysis of different policy options for the management of gas demand during winter 2021-22. It was informed in the meeting that the enhanced demand of domestic consumers is to be met through savings from captive power generation. The prudent pressure management plan will also be developed to ensure the stable supply of gas to the consumers. Gas supply to CNG will be curtailed during the winters. Industrial activity will be a focus in the gas management plans, especially the export industry. The CCOE approved the demand side of the proposals submitted by the Petroleum Division. It was further directed that the CCoE will consider the supply side proposals in the next meeting.
The CCoE also considered the summary presented by the Maritime Affairs Division on the construction of Oil Storage at Oil Installation Area Keamari, Karachi. The meeting was informed that insufficient storage infrastructure at the ports creates a bottleneck in the supply chain and results in increased costs. To compressively review the situation and available options, the CCoE formed Sub-Committee under SAPM on CPEC Khalid Mansor including Member Energy Planning Commission, Secretary Petroleum, and Secretary Power. The sub-Committee will submit its proposals to the CCOE within two weeks.
Cabinet Committee on energy also reviewed the monthly report submitted Power Division on the out of merit power plant operations due to network constraints. The committee was assured that a constraint removal plan for the encountered issues is already under implementation.
The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Minister for Science & Technology, Minister for Railways, Advisor to PM on Commerce & Industries, SAPM on CPEC, Chairman OGRA, Chairman NEPRA, representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.
It is relevant to mention that Cabinet Committee on Energy (CCoE) on Thursday remained indecisive on oil refinery Policy 2021 as the CCoE discussed the summary but preferred to stay away from taking any decision in this regard.
Petroleum division had earlier linked 10% tariff protection for the existing refineries on motor gasoline and diesel with the construction of up-gradation projects before December 31, 2025, in the new oil refinery policy 2021.
