Government of Pakistan is Baffled by Gas Crisis

The government of Pakistan has decided to cut gas supply to the Captive Power Plants (CPPs) to increase power consumption from the national grid while it has approved the issuance of new licenses to CNG stations which shows that is baffled by the gas crisis.

What is CPP?

A Captive Power Plant is also called an auto-producer of electricity generation. It is managed and used by an industrial user to produce and consume energy from its own source instead of relying on supply from the national grid.

Government’s choice

The gas supply to the CPPs will completely stop in two phases as decided by the Cabinet Committee on Energy (CCoE).

From February 1, the gas supply would cease for general industry followed by for export-oriented industry from March.

The government decided to take the measure to steer the gas supply to domestic consumers from CPPs.

Meanwhile, the capacity trap, surplus power generation, was another challenge.

The measure would save gas to produce power equivalent to 3,000 Megawatts (MWs) in the long run.

Meanwhile, the shortage of gas across the country with the rise in consumption has emerged as a serious problem too.

But, surprisingly, the government has approved to issue new licenses to re-gasified liquefied natural gas (R-LNG) based CNG stations.

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A ban on new licenses to CNG stations was imposed in 2008 on the pretext of depleting reserves.

Pakistan has placed orders to import LNG that could cater to the demand which is expected to mount after lifting the ban.

With the establishment of new R-LNG-based CNG stations, another crisis will be impending as the delivery of required LNG vessels has not been made yet to Pakistan.

It seems like the government of Pakistan is baffled by the gas crisis and left high and dry.