Lockdown: Significant decline in electricity, gas and oil demand in the country

Lockdown: Significant decline in electricity, gas and oil demand in the country

Islamabad: Coronavirus has dramatically reduced demand for electricity, natural gas, and petroleum products in the country which has created serious operational and financial difficulties in the supply of logistics.

The senior government official said power consumption has dropped by 30 percent, and that officials are forced to provide uninterrupted electricity in areas where loss rates are high enough to maintain flow.

For example, based on last year's consumption, the estimate was 12 thousand 500 to 13 thousand megawatts, but on Monday, electricity demand was reduced to 8 thousand 500 megawatts.

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Sources said that the power consumption in January and February was approximately equal to 11 thousand 500 MW to 12 thousand MW.

On the contrary, the consumption of electricity was estimated at 10 thousand to 10 thousand 500 megawatts, despite the estimate of 15,000 megawatts by the power operators in March.

In this regard, an official said that the power consumption for April is estimated at 18,000 gigawatts, but it is not possible to reach this target in view of the current situation.

He made it clear that not only Coved 19 but the recent series of rains in the country also affected the demand for electricity but the biggest decline was the shutdown of industries and businesses due to the lockdown.

He said that this would result in overcharges, which would ultimately affect prices for consumers and cause the company to face cash flow problems.

Similarly, gas consumption has decreased by 40 to 50% and due to poor use by consumers, the gas in the lines of the gas network has reached a critical level.

In addition, imports of Liquid Natural Gas (LNG) have been reduced significantly as the companies that suffered losses and losses of liquidity.

Officials say gas sales have dropped in recent days, for example, LNG sales in Sui Nardin Gas Pipeline Limited (SNGPL) are estimated to be down 4 million MMCF instead of 800 million cubic feet daily.

Similarly, the CNG sector is using only 15 MMCFD as opposed to an estimate of 40 MMCFD.

In the current scenario, the only hope for gas companies is to enable fertilizer plants, while in the energy sector, orders of 450 MMC FDLNG were issued in April which now appears uncertain in the current situation.

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