Gas supply to industry in Punjab, Sindh, power units restored

LAHORE: Natural gas supplies to industrial and power sectors are being enhanced from today (Wednesday) by 210 mmcfd following a decision taken by the ministry of Energy.

According to an official memo, the Load Management Committee of Sui Northern Gas Pipelines Company (SNGPL), which held a meeting on Tuesday, decided to restore 75mmcfd gas, which is 38 percent of average consumption of textile captive power units for the period from September 2021 to November 2021.

The gas supply to textile captive power units is being restored after obtaining written undertaking on a form and withdrawal of court cases. Gas supply of general industry (non-export) would be suspended for one day per week in rotational manner on region wise.

On the other hand, gas supply to power sector would be increased to 325 MMCFD from 190 MMCFD for the period from December 29, 2021 to January 3, 2022, while 100 MMCFD/day may be added in the pack daily for this period.

Gas would be provided at $9/mmbtu to export units and on OGRA notified tariff to non-export units.

The industry has been asked to submit undertaking, declaring withdrawn of court cases where stay orders have been obtained for supply of RLNG at $6.5/mmbtu .

Moreover, a senior official of ministry of Energy told The News that gas supply is also being resumed to industry located in Karachi on rotation basis, alternatively suspending gas for a day in week for each batch.

To a question, the official said gas availability situation has improved due to better management of gas utilities.

“Despite harsh weather, we have managed to provide gas to domestic sector and now decided to resume gas supplies to industry and power sectors,” he added.

The official was of the view that such load management of natural gas would help in rationalising energy mix better.

“We need to increase electricity consumption wherever possible while judiciously utilizing scarce natural gas supplies,” he said.

Meanwhile, APTMA has termed restoration of gas to industry a much needed step.

“Assuring a sustainable continuity of gas supply will go a long way for the export sectors, achieving maximum production and capitalising on export orders,” APTMA said in a statement. “These measures will support the Industry to meet the export target of $21 billion for 2022.”

The statement said the government was fully cognisant to the fact to ensure competitiveness of export-oriented industry.

“We assure to the industry affordable energy supplies as per demand through mutual consultation.”

An APTMA delegation also met finance minister Shauket Tarin “who assured them of adequate gas supply, working capital and easing their refund mechanism”.

“Tarin suggested a revolutionary mechanism whereby industrialists could be entitled to a refund within seven days of their claim, and should FBR (Federal Board of Revenue) not respond within seven days, industry would be entitled to adjust the refund against any FBR dues,” the statement said. “This will to a vert large extent ease liquidity issues.”