Gas Allocation to Power Sector May Be Doubled to Ease Loadshedding Risks, Curb Tariff Hikes
The federal government is considering a major diversion of domestic natural gas supplies to the power sector in an effort to contain electricity tariff increases and avoid severe loadshedding during the summer months.
According to a report by Dawn, gas supply to the power sector is expected to at least double to 160 to 170 million cubic feet per day by the end of April or early May, up from the current 85 to 90 million cubic feet per day. An additional 20 to 25 mmcfd may also be diverted from the CNG sector if the government is able to manage political pressure.
Federal Power Minister Awais Ahmad Khan Leghari has reportedly warned that unless more gas is shifted to electricity generation to replace unavailable imported LNG, power tariffs could rise sharply or the country may face large-scale loadshedding.
Officials said the government is also considering diverting supplies from domestic consumers, though this could affect more than 7 million gas users and trigger a political backlash. The minister is reported to have told the cabinet committee that the government is facing a difficult choice between unrest among gas consumers and nearly 30 million electricity users.
Gas supply to the fertilizer sector is expected to be protected as much as possible due to concerns over urea availability and the risk of smuggling, given the large price difference between locally produced and imported fertilizer.
The power division also warned that the fuel cost adjustment may rise significantly in May if expensive furnace oil and diesel are used more extensively. Without RLNG, around 5,000 megawatts of efficient plants in Punjab would become costly to operate.
Officials now expect two to three hours of average daily loadshedding, especially during night hours when solar generation declines and summer demand increases.
