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Captive power plants, CNG sector gas to be diverted to domestic consumers

Captive power plants, CNG sector gas to be diverted to domestic consumers

Captive power plants, CNG sector gas to be diverted to domestic consumers

ISLAMABAD: The Petroleum Division has informed the Cabinet Committee on Energy that during the winter season the demand for domestic consumers will be met through cutting the gas supply to captive power plants and the compressed natural gas (CNG) sector.

A meeting of the Cabinet Committee on Energy was held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar on Thursday.

The Petroleum Division presented the projected natural gas supply and demand position in the country for the winter season. During the meeting, the Petroleum Division presented a detailed impact analysis of various policy options for the management of gas demand during the winter 2021/22.

The meeting was informed that the enhanced demand for 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.

The 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 also directed that the committee will consider the supply side proposals in the next meeting.

The Cabinet Committee also considered the summary presented by the Maritime Affairs Division on the construction of oil storage at the oil installation area in 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 a sub-committee under SAPM on CPEC Khalid Mansor, which will also include members of the Energy Planning Commission, petroleum and power secretaries.

The sub-committee will submit its proposals to the CCoE within two weeks.

The Cabinet Committee also reviewed the monthly report submitted by the 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.

Ministers for finance, energy, maritime affairs, science and technology, railways, adviser to the prime minister on commerce and industries, SAPM on CPEC, Ogra chairman, Nepra chairman, representatives of the regulatory authorities and senior officials of the ministries/divisions also participated in the meeting.

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