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Pakistan Facing Shortage Of Fuel And Oil Supply – Industries Shutting Down

Oil supply

Shortage of fuel due to the low supply arrangements is causing a major power supply failure. This results in consumers all around the country suffering extremely.

The Power Division sector’s senior official stated that power and energy companies around the country are facing such circumstances that are unavoidable. The sector is forced to cut power having the range of 1000 to 2000 MW and also in peak hours. The fun thing related is that this does not consist of regular load shedding of gas and electricity of 2500 MW to 4000MW. This depends on the authorities of energy.

Pakistan is a nation that has been struggling since its independence due to the importance of geographical location. With neighboring countries threatening from major ends, Pakistan has to spend a lot on defense budgets which is necessary. Moreover, the government issues for many decades have caused instability in the economical structure of Pakistan. It has been a controlled situation since 2013 but the graph has not been constant throughout these years.

The senior official passed a statement, “ We are not provided with Liquefied natural gas – LNG although demands are made, and also oil supplies for furnaces are not enough to carry out progress and process in power plants.”

 The shortage is the result of the cancellation of LNG vessel deliveries. These deliveries were about to happen in the 2nd and 3rd week of July with rates equal to $11.77 and $11.66 per million British thermal units. Moreover, these undelivered vessels were given to a party after the time of 4 days at a higher rate of $12.78 per MMBTU. 

Dams Of Pakistan

More information was provided by the official telling the news channel that Mangla Dam and Tarbela Dam have not provided enough power supplies but the major China-Hub power plant was expected to supply 1300 MW of power. But, unfortunately, the power plant of China-Hub was struck with lightning earlier. 1800-2050 MW of energy is the requirement at the current instance.

Energy Minister, Hammad Azhar informed the media through a tweet stating, “ Due to the China Hub power plant incident of lightning striking, and low energy supplies from Mangla Dam. Few of the local gas, almost 3.75% in total, is being delivered to the power sector. This is a temporary solution of supply to meet demands.”

As the humidity across the country increased in the past few days, the shortage of power supply has increased up to 4000 to 6000 MW.

Operational matter senior stated: “ High loss consumers are not being considered anymore as a priority. We allow shortages to these areas for dropping off a load in areas facing less losing extreme circumstances.”

Power companies are getting 740 MMCFD of LNG instead of receiving 95 MMCFD by Saturday. This supply was increased up to 780 MMCFD on the day of Sunday due to adjustments. Those adjustments were a stoppage of gas supplies to the CNG sector in KPK and Punjab. 1100MW of power is required in these provinces which is short.

 Secondary Options for power shortages:

Due to low energy supplies all around the country, people and companies are operating on the usage of solar energy. Many businesses are selling solar panels online to every client to overcome power failure. Moreover, the water business has been damaged due to power supply in areas. To overcome this difficulty of water shortage, RO plants online selling is being carried out by RO plant businesses to supply water cans and bottles to every area possible. Since the start of diesel generators, people have consumed a lot of generators. Almost every house in Pakistan has a diesel generator. But due to no power supply and requirement and need for energy. The supply of Cheap Diesel generators started to overcome the grief of no electricity and power around the country.

Furnace oil is quite important to run the oil sector. It has already ended in numerous power plants. Hubco plant, one of the most popular plants, has been closed now due to a shortage of fuel and furnace oil. The Jamshoro plant is running at half the required capacity. Much of the furnace oil running industries are facing critical situations across the country.

Officials stated, “ Total power in the system in the peak hours available is 23000 MW against the demand of 27000 MW on Sunday.”

A representative from the Petroleum Division stated, “ multiple reasons behind power shortage are insufficient to fuel and finances and market condition. Orders from the furnace oil-consuming industries were at an unsuitable time when prices were high and couldn’t be acceptable at all.

It has been researched that rare furnace oil vessels and tanks have been available to the market but the ones having them took benefit and profit from these. Desperate buyers were desperate enough to buy them at higher costs due to the running of the plant. Those sellers benefited such that the 9 billion to 57 billion rs of debt has been built. This debt has now crossed Rs.120 billion at the moment.

Conclusion

Power failures at the present time are quite devastating. Dams have not covered the major part of power supply due to less amount of rain and no plans at all. Moreover, the current government is facing a lot of difficulties and a lack of support from various divisions, especially the fuel sector. Due to rainfall in Karachi, many areas are still facing power failure and an extra amount of electricity shortage has been faced by citizens.

The solution to the current situation is away from any plan currently held by the government. The government seems to be surviving to hold the country’s issues over the past 5 years. Many officials of the oil sector have requested the furnace oil requirement but no proper answer has been granted to them. Much of the industries are coming to closure which the petroleum sector and oil sector will face closure if no further is taken to stop power shortage in future.

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