Oil industry of pakistan - Alberta - Oil and Gas Industry Press

Preview of 2012: Solve the energy crisis now or go home

20.05.12

Some of the more sardonic analysts believe that the crisis has already hit that catastrophic phase. The government is defaulting on its obligations to the energy companies, the gas supply to all industries in Punjab has been indefinitely shut down and the government is effectively moving to end the use of compressed natural gas (CNG) as a fuel for vehicles. To those who say that this is bad, I will say this: never ask if it can get worse, because in Pakistan, it always can.

Let us take a look at some of the numbers: about two years ahead of schedule, gas demand has shot up to 5,100 million cubic feet per day (mmcfd) while supply is still at 4,100 mmcfd and falling. The pace of its fall will only increase as the years go on, while that demand figure will continue to rise faster and faster.

Meanwhile, as the country runs short of gas, the government insists on supplying some of the most politically significant constituencies – domestic consumers, industry and CNG – at the expense of the power sector. Petroleum Minister Asim Hussain has succeeded at least partially in reversing this policy madness, but was not able to do so until the crisis hit a particularly acute phase. Paradoxically, as the shortage gets worse next year, his hand will be strengthened in his efforts to reform the sector.

Source: The Express Tribune