Changes in gas load management order approved – Alfalah Securities Limited

Karachi, January 30, 2013 (PPI-OT): Economic Coordination Committee (ECC) of the Cabinet has approved changes in gas load management order in which domestic and commercial sectors are at the top most priority for gas supply.

According to Alfalah Securities Limited, cement and then CNG have been assigned the lowest priority while power sector has been assigned higher priority than domestic and commercial sector while general industrial, fertilizer and captive power was assigned third priority. Resultantly, cement and fertilizer sector companies are likely to be more affected from gas outages which may be aggravated further as gas shortfall rises.

ECC also approved marginal and standard gas field pricing criteria and guidelines of 2013, submitted by the Ministry of Petroleum and Natural Resources. ECC approved the proposal of the Ministry to set the Marginal Fields gas prices in accordance with Petroleum Exploration and Production Policy 2012 with an additional premium of USD 0.25 per MMBTU for three zones. The government shall have the first right to purchase pipeline specification gas from Marginal Gas Fields at a price to be determined in accordance with the above mentioned formula.

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