20000419

450 mmcfd

demand pending

with SSGC

KARACHI: A demand of 450 million cubic feet per day (mmcfd) from domestic, commercial and industrial consumers and power generating units is pending with the Sui Southern Gas Company (SSGC).

An official of the SSGC told APP here on Tuesday that the Karachi Electric Supply Corporation (KESC) alone needs 150 mmcf daily of natural gas for its Bin Qasim units, which are currently running on furnace oil, while co-generation consumers (captive power units) also require 100 mmcf per day.

He said a consolidated demand from domestic, commercial and industrial consumers was estimated at 200 mmcf per day.

"This quantity is expected to be available with the SSGC by 2002 as private sector gas field operators would be able to develop their wells in next two years and inject it in SSGC distribution network", the official observed.

He pointed out that Tapal Energy and Hub Power Company had also expressed desire to use gas instead of furnace oil for power generation, adding that the gas prices would be based on the purchase and distribution cost of the SSGC.

The official said the SSGC had signed contracts for the purchase of gas from private sector companies for 147 mmcf per day including 87 mmcf per day from Austria-based OMV Pakistan from its Miano gas field.

In addition, 100 mmcf gas per day is available from the newly-discovered Miano gas field, operated by OMV Austria while 150 mmcf gas per day with the British Petroleum at Zamzama Badin II.

Similarly, about 100 mmcf gas is available at the newly-discovered Savan gas field and 260 mmcf gas at Bhit-owned by British Lasmo Oil.

He said the purchase of natural gas from private sector operators mostly foreign companies would cost Rs 120 per mmcf to the Sui Southern which was selling gas to its domestic consumers at about Rs 60 per mmcf, paying a subsidy of Rs 45 per mmcf.

He said the company had to sell this gas at higher rates to the commercial, industrial and power generating plants.

Currently the SSGC is supplying 600 mmcf daily to its consumers which are estimated at 1.45 million in 621 towns and villages in Sindh and Balochistan.ÑAPP