Govt striving to resolve energy crisis

Published February 10, 2009

ISLAMABAD, Feb 9: The government on Monday reviewed the supply of power and gas to the industrial sector which has come to a grinding halt due to energy crisis.

Minister for Industries and Production Mian Manzoor Ahmad Wattoo chaired a meeting of a ‘committee’ to review allocation of the natural gas to Fatima Fertiliser Company, which is under construction in Sadiqabad, Punjab. Minister for Water and Power Raja Pervez Ashraf was also present in the meeting.

Mr Wattoo said the government was working hard to solve the power and gas crisis to ensure that the pace of industrial production was not derailed.

He said the energy problem being faced by the industrial sector would be resolved by the end of this year. He disclosed that negotiations with Iranian government were in final stages and sufficient gas would be available after commencing of supply from Iran.

The minister said the government was also encouraging development of alternative resources for energy on public–private partnership basis.

The case for additional demand of the Fatima Fertiliser was under consideration of the Ministry of Petroleum and Natural Resources for feasibility study and on receiving of their recommendation the demand would be finalised.

Fatima Fertilizer had applied for 110 million metric cubic feet per day (mmcfd) but the Economic Coordination Committee (ECC) of the cabinet in its meeting held in August 2004 had approved allocation of 75 mmcfd gas to Fatima Fertilizer from Mari Gas field.

As per the ECC decision, the plant would begin production in September this year. Ministry of Industry and Production was monitoring the implementation of the project in national interest.

Mr Wattoo also urged that the plant should be completed on schedule time as country was needed fertiliser for development of agriculture for which government would provide full assistance to them.

He said the case of extra gas demand of the fertiliser company should also be forwarded to Planning Commission for their study and recommendation and on receiving the report the final decision would be made in next meeting.

The meeting also asked the Ministry of Petroleum and Natural Resources to submit the technical feasibility report on the fertiliser company. The Ministry of Water and Power was asked to submit their input and output report on the matter of additional supply of natural gas to Fatima Fertiliser. These reports would be review in the next meeting to be held in the second week of next month.

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