Karachi Electric Supply Company Limited Appeals for implementation of Uniform Gas management policy

Karachi: Karachi Electric Supply Company has appealed to the Federal Minister for Petroleum and Natural Resources, Dr. Asim Hussain for the earliest implementation of the decisions of ECC considered in the summary presented by the Ministry of Petroleum and Natural Resources, on 30th June this year.

The summary under the, ‘Uniform Natural Gas Load Management Policy’ envisaged a two-day holiday per week for CNG stations and industrial sector, and 20 per cent curtailment in gas supply to fertilizer plants. The gas so saved was approved to be supplied to KESC in order to pre-empt a potential power crisis in Karachi across all residential, commercial and industrial areas.

After a heavy spell of late monsoon rains, the mercury is rising in Karachi and humidity is only making things worse leading to a significant increase in power demand. With the current supply of gas that is at 180 MMCFD, KESC desperately waits for the ECC’s decisions to be implemented immediately.

KESC has warned that load shedding duration will go up to 10 hours a day, if the aforesaid ECC decisions are not implemented and KESC is not supplied its approved volume of 276MMCFD of gas. KESC recalled that on June 30 this year, ECC meeting on ‘Uniform Natural Gas Load Management Policy’ had taken two important decisions.

It had directed the SSGC to observe two gas holidays per week for CNG and industrial sector and the gas thus saved be diverted to KESC. The ECC had also decided that 20 per cent gas curtailment being observed in the fertilizer sector would continue.

While expressing concerns over non-execution of ECC decisions, KESC said that the present load shedding schedule could be maintained only if these decisions were implemented without further delay.

Otherwise the insufficient fuel supply would force KESC to conduct a maximum of 10 hours load shedding in residential and commercial areas. Presently exempted Industrial consumers will also be subjected to load shedding.

KESC asked for intervention of Federal Committee members (Dr Asim Hussain, Dr Abdul Hafeez Sheikh and Mr Naveed Qamar) to help the utility in providing its approved quota of 276 MMCFD of natural gas, or with a reduced gas supply of at least 200 MMCFD plus 1,700 tons of Furnace Oil at gas price as per the agreed formula in Ramadan ul Mubarak. The intervention of the committee in this matter could help KESC to avert the imminent power crisis.

KESC reiterated its request, as discussed earlier with Federal Committee, to continue with the same GLMP mechanism as in Ramadan in order to maintain normal load shed.

KESC further emphasized that the approved quota of 276 MMCFD has not been provided to the utility on regular basis, especially during the last two years gas supply had been unstable and has gone down drastically. Government needs to adopt an approach in view of the power needs of the largest city of the country which is also the economic hub and a major source of government revenues.

KESC urged the Government and Federal Committee to take immediate steps to pre-empt the imminent power crisis in the city. Supply of 276 mmcfd gas or at least 200 MMCFD gas and 1,700 tons furnace oil at gas price would help KESC to supply uninterrupted power to Karachi industries and a manage a controlled load shedding regime in residential and commercial areas.

For more information, contact:
Adil Murtaza
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641
Email: adil.murtaza@kesc.com.pk