The gas shortages this winter have set in so badly that after domestic consumers and vehicle owners depending on CNG, now industry is being affected, with the result that exporting ability is being affected. Both domestic consumers and CNG pump owners were driven to take to the streets in Karachi on Friday, with the result that traffic was blocked at three different places. Energy Minister Hammad Azhar’s declaration that no more Reliqufied Natural Gas (RLNG) cargos would be imported because people could not afford the gas thus produced, seemed to have merely added fuel to the fire. Mr Azhar is guilty of having failed to import RLNG in summer even though it was known that there would be a spurt in demand in winter. Instead of ordering at leisure, the country is now in the position of ordering when the need is urgent, and the gas companies can smell blood. In summer, they would have been aware that such orders would provide them a firm revenue stream even if the spot price was higher.
It is perhaps only a matter of time before the domestic industry, some exporting, and others substituting for imports, are affected. Gas is used directly as a feed-stock for fertilizer production. If production in this industry begins to stutter, fertilizer imports would be needed, and food autarky, already ended by this government, would be left almost permanently out of reach. But to pay for those fertilizers, the country would need to export more, particularly textiles. That would become particularly difficult if gas remains in as short supply as at present. While gas may not be used as a raw material, it is used to fuel the Captive Power Plants that generate the electricity needed when WAPDA is engaged in loadshedding.
Long-term solutions include examining the possibility of gasifying Tha coal deposits, instead of just burning them up to produce power (and pollute the atmosphere). However, in the short term, Mr Azhar must ensure that this winter’s errors are not repeated, and that RLNG cargoes are booked for next winter well in advance. This winter of discontent should be enough.
