Pakistan rations gas supplies as shortfall surges 33% on year to 1.6 Bcf/day

The Pakistan government has reached agreement with major gas consumers for a rationing plan as the country's gas shortfall surges to 1.6 Bcf/day this winter, 33% higher than during the same period last year, a Ministry of Petroleum and Natural Gas official said Monday.

The surge has forced the government to negotiate a gas load management plan to ration gas to industrial, fertilizer and retail fuel pumps, the official said.

Fertilizer plants Pak Arab Fertilizer, Agritech Fertilizer, Dawood Hercules and Engro Corporation will shut for 15 days, while the industrial sector in the country's Punjab province will be closed three days a week and in Sindh, one a week, the official said.

Compressed natural gas refueling pumps will be closed for three days a week in Punjab and almost two days a week in Sindh.

Pakistan typically faces a gas shortfall of 1-1.2 Bcf/day, with consumption averaging 5.2-5.4 Bcf/day and production 4.2 Bcf/d.

The shortfall is expected to increase to 3.18 Bcf/d in 2014, with projected gas supply of 4.28 Bcf/d against demand of 7.46 Bcf/d.

The government estimates the proportion of total gas consumption in the country by the power sector at around 28%, general industry 26%, domestic users 17%, fertilizer segment 14% and transport sector 8%.

Minister for Petroleum and Natural Resources Asim Hussain Saturday directed state-owned Sui Northern Gas Pipeline and Sui Southern Gas Company to make arrangements to bottle liquefied petroleum gas to help households overcome the shortage.

He said anyone in any sector defying the mutually agreed gas load management plan risked prosecution under the Gas Theft Act 2011 and could face up to 14 years' jail and a fine of Pakistan Rupees 10 million ($112,000).

--Haris Zamir, newsdesk@platts.com

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