RECENTLY our energy sector has witnessed some overwhelming turn of events. The country has seemingly now reached a point where there may be excess supply of energy in the system.
The prime minister inaugurated a second Liqueified Natural Gas (LNG) terminal with a capacity to handle 600 mmcf d of gas, which would take the total import capacity to 1.2bn cubic feet per day.
Another LNG terminal is in the pipeline which would further increase the capacity.
Nonetheless, the planning behind this approachcouldnotbe poorer.
The unplanned injection of LNG has brought the oil industry to the brink of collapse. LNG is now being used as the priority fuel for electricity generation.
There is now negligible production of furnace oil-based electricity with a continuous shutdown of oil-based power plants. Not just that: these refineries are also on the verge of closure. This would create another oil crisis which may paralyze our economic activity.
