Fighting winter blues

SNGPL to combat gas crisis by distributing low-cost LPG cylinders

The Sui Northern Gas Pipeline Limited (SNGPL) has decided to distribute 100,000 LPG cylinders this winter season to mitigate energy shortage.

Speaking to Bol News, a senior official of SNGPL said that they had already received 2,500 applications this month. “The company has decided to distribute around 16,000 cylinders in November.“

These LPG cylinders would be distributed to the consumers on a ‘no profit no loss’ basis and the company had already signed a distribution agreement with Sui Southern LPG Limited, he added.

The senior official also said that these cylinders will be distributed in Lahore, Rawalpindi, Multan, Faisalabad, Peshawar and other cities. “The initial investment for this project is up to Rs1.2 billion and two cylinders could be issued on an identity card.”

This is the first time that the gas distribution company for northern Pakistan has come up with an alternative plan to mitigate the sufferings of consumers due to gas shortage in winter because the country’s gas reserves are constantly been on the decline for the past few years. Besides, imported gas is pretty expensive and usually consumed by the industry.

Pending gas connections

There are about 2.8 million pending new gas connection applications out of which around 1.24 million are from domestic consumers in Punjab and KP in the region of SNGPL, the senior official further said.

“The national gas reserves were constantly declining so in such a situation it was a need of the hour to look for alternative resources and provide them to consumers, especially to the tail-end consumers.”

He added, “We want to make sure that at least the domestic consumers get a good supply of gas to cook breakfast, lunch and dinner as the temperature drops.”

The ‘right’ initiative

Amina Hassan, who is a Digital Marketing Consultant and event planner in Lahore, says that every winter it is an uphill task to prepare food for family and friends at gatherings due to the low gas pressure. “Providing LPG cylinders is an innovative idea which would help domestic consumers to have natural gas with proper pressure.”

Amina and her family have already applied for the LPG cylinder and they have received a node from the company.

Agreeing with her, Shabih-e-Fatima, a housewife and a mother of two said that they have been using LPG cylinders at home for the past two years when they moved to their new house.

She lives in Lahore’s Wapda Town and applied for a gas connection some two years ago. She is yet to receive the connection despite having paid the urgent fees.

“The gas from LPG cylinders is as good as natural gas. We can regulate the usage because you don’t have to wait for proper pressure to cook soup or make coffee for the children,” she added.

“These cylinders are a blessing and I will ask the government to extend the scope of this facility to other cities and provinces as well in the coming years.”

Cylinders at doorsteps

Agreeing with them, another senior official who is looking after this project stated that SNGPL would provide these LPG gas cylinders at the doorstep on a first come first serve basis to combat expected gas shortage in the upcoming winter season.

“We are providing these cylinders at the rates prescribed by the Oil and Gas Regulatory Authority which would save the consumers from inflated prices in the black market.

LPG black market in shambles

Dastagir Ahmed Khan, one of the distributors of LPG cylinders in Lahore, said that distributors are worried that this new initiative might impact their business. “It is always a good season for us amid huge demand from domestic as well as commercial consumers but let us see how it pans out this time with these LPG cylinders in the market,” he concluded.

Proposal to lift gas connections ban

One of the major causes of concern for the sources in the petroleum ministry and SNGPL was that the federal government is mulling over a proposal to lift the ban on new gas connections, a move aimed to woo potential voters in the next general elections.

“If they lift the ban from new connections the whole purpose of this project would go in vain as this would accelerate the depletion of our natural gas reserves.”

The ban on new connections was imposed due to a shortage of gas in the country and if that decision is reversed, it would be a decisive blow to the LPG cylinders project, he also said.

Multiple sources from the finance and petroleum division said that the federal government has decided to release Rs17 billion under Sustainable Development Goals Achievement Programme.

The sources added, “Let me share that the federal government led by Prime Minister Shehbaz Sharif had allocated Rs70 billion for Sustainable Development Goals for the current fiscal year in the budget which means that the federal government will release these funds through legislators for launching small schemes including gas and water connections and other initiatives in the deprived areas of Pakistan.”

They also said that no effort was made to enhance our gas capacity or resources and new schemes would be a huge blow to natural reserves of gas.

photos: Mohsin Raza/Bol News