Asad Umar advised entrepreneurs to use RLNG| Instant News


Requests from the business community were finally heard when the federal government noticed a prolonged power outage in Karachi. Although it has ensured reduced cargo release and the resumption of gas supply to industry and CNG stations, the government recommends that employers switch to expensive imported RLNGs as a solution.

This was suggested by the Federal Minister for Planning, Development, Reform and Special Initiative Asad Umar during a meeting with employers on Saturday to discuss issues of power that plague the economic center.

“The federal government can control K-Electric if it does not improve its attitude,” said a press statement from the Sindh Governor’s House, quoting Umar.

“The agreement (privatization) allows K-Electric to maintain its monopoly (that no other mass producer can establish an exclusive production plant in Karachi) until 2023,” an industrialist, quoting the minister, told The Express Tribune after attending the meeting.

Previously, several private entities tried to establish exclusive mass power plants in an effort to end blackouts in the city and increase economic activity. However, they failed to do so after K-Electric filed a case against them and the court decided to stay overnight, it was known.

The Prime Minister’s Special Assistant (SAPM) about the Petroleum Division Nadeem Babar, speaking at a meeting with business people and online industrialists, said that Pakistan was scheduled to receive a furnace oil ship in the port of Karachi on Tuesday and another on Thursday.

“Imports of furnace oil will end unloading unannounced in the K-Electric network next week,” meeting participants said, citing special assistants.

The chapter was further quoted as saying that the government would continue supplying gas to power plants in export factories in seven industrial zones in Karachi and other industries, including CNG fuel stations, starting Monday.

“K-Electric will not need additional gas from Monday that the government has diverted from the industry over the past few days,” other meeting participants said.

Umar advised industrialists to switch to expensive imported gas; Re-gasified liquefied natural gas (RLNG) because gas output from fields has been declining for a long time.

“Gas production has decreased by 10% every year. RLNG is a permanent solution,” said a meeting participant who quoted Umar.

Responding to this, the President of the Korangi Trade and Industry Association (KATI) Sheikh Umer Rehan asked Umar why industry players had to use expensive imported gas while Sindh produced higher gas volumes than the provincial requirements.

Sindh gas was given to other provinces that violated the 18th amendment in the Constitution. “This is our first right to use gas based on an amendment,” he told the meeting.

He urged the federal government to convince K-Electric to develop infrastructure at a rapid pace that would allow it to import an additional 800 megawatts of electricity from national grid stations in four to five months.

The minister, however, told the meeting it would take around 18 months to lay down the transmission and distribution networks needed for additional supplies from the national network.

When meeting participants invited the attention of high-ranking government officials to the unprecedented 15-17% loss of gas channels, better known as unaccounted for gas (UFG), Babar said the country needed to replace its 50-year-old gas transmission and transmission system. with a new one.

“Umar said building infrastructure for electricity, gas and water in Sindh was the task of the provincial government,” Rehan added.

Meanwhile, Vice-President of Pakistan’s Federation of Chambers of Commerce and Industry (FPCCI) Khurram Ijaz said that Karachi-owned businessmen attended another meeting where the chronic problem of the low availability of water, electricity and gas to factories was highlighted while utility officials sent the same goods. presentation as a solution to the crisis they have repeated for the past two years.

“Official Sui Southern Gas Company (SSGC) gave the same presentation as they did in 2018. The presentation only explained this was production, this was consumption and this was a deficit and there was no solution.”

K-Electric officials were not part of the meeting with industrialists because senior officials held separate meetings with them. “They (EC officials) should be part of the meeting with industrialists,” he said.

He, however, quoted Umar as saying that the government was taking steps to fix the electricity crisis in the city other than the one by K-Electric.

“I urge government officials that if they want to attract foreign direct investment (FDI) in the country and want to revive exports to gain valuable foreign exchange, they must remove obstacles in the way of production by local industries,” Ijaz said. .

“The minister, however, blames former Prime Minister Nawaz Sharif and former fiance minister Ishaq Dar for all the crises faced by industrialists and Karachi people today,” he added.

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