ISLAMABAD: Confusion mounts in the gas sector as the government is still uncertain if it can accommodate the textile industry demand and continue with its recent plan for gas.

The question of how to supply natural gas to Punjab’s troubled textile industry re­­mained unresolved during a meeting on Tuesday as two energy ministers opposed it, but Finance Minister Ishaq Dar used his veto against withdrawing gas from the industry.

“The finance minister asked relevant authorities to maintain supply of gas to textile units until a solution is reached in due course,” said a statement issued by the finance ministry after the meeting of the four-member special ministerial body.

Authoritative sources in the water and power ministry said the power ministry opposed tooth and nail the supply of gas to the textile sector at the cost of power plants and would remain adamant on its stand in future.

Power minister Khwaja Asif told the committee that his ministry was prepared to ensure non-stop power supply to the textile units barring the short lean period which would help them sustain production.

Petroleum minister Shahid Khaqan Abbasi said: “It was a stark reality that there was shortage of gas for even domestic consumers and it would be doubly difficult to supply gas to textile units under the circumstances.”

The meeting was informed that about 108 mmcfd gas was currently going to the textile industry, enough to run its plants for eight hours while the textile units were then run on uninterrupted electricity for the remaining 16 hours.

The Sui Northern Gas Pipelines Limited (SNGPL) had issued notice of gas disconnection to the textile units on Tuesday.

A 16-member delegation of All-Pakistan Textile Mills (Aptma) told the body that gas was needed at all costs for all the value-addition processes.

The delegation was perturbed over non-serious style of the ministerial body to resolve problems of the industry. It said the electricity was economically viable only if tariff is kept at Rs10 per unit.

“We’re confused, we don’t know what’s going on,” Aptma Chairman S M Tan­veer told Dawn after the meeting.

The meeting was called on Friday on Prime Minister’s directive “for finalising the proposals for settlement of the issue of gas shortage for the textile industry in Punjab during winter months.”

Aptma had asked for 100mmcfd to be supplied throughout the winter, in line with last year’s allocations.

The directive to supply gas to the textile industry was issued while the PM was in London. It was announced by an unusual press release from the finance ministry, even though gas-related issues typically fall under the purview of the petroleum ministry.

Only a few days before this decision, the petroleum minister had announced winter gas load management plan which entailed no-gas to textile and CNG in Punjab for four months.

The ministries of power and petroleum are of the view that after gas supply to domestic consumers, the remaining quantities should be provided to power plants for cheaper generation compared with inefficient captive power plants of the textile industry.

However, before returning, the prime minister constituted the four-member committee to finalise the proposals for resolving textile sector’s gas shortage.

The committee comprised ministers from textiles, petroleum, water and power, and finance, as well as industry leaders represented by Aptma. It’s first meeting was scheduled for Tuesday.

According to industry leaders dealing with the government, the finance minister strongly favoured the decision to accommodate industry requirements of the precious fuel. The textile minister also was in favour.

The petroleum minister was said to be undecided, while the water and power minister was strongly against the idea, favouring the current plan to divert gas to domestic consumers and compensate industry with uninterrupted electricity from the grid.

Aptma leaders made the journey to Islamabad by road to attend the meeting on Tuesday.

They say once the meeting began, the finance minister immediately announced that he had another meeting to attend and had to leave. Two other ministers followed him out. That left the industry delegation alone with the water and power minister, who repeated his offer of continuous supply of electricity as compensation for diversion of gas to domestic consumers.

The industry delegation made a counter offer to purchase the electricity at Rs10 per KWh to which they were told by the secretary that he would discuss it with the finance minister and revert.

Dar responded to requests for comment via an SMS, saying he has an important engagement at the PM house and cannot speak on the phone.

Published in Dawn, November 19th , 2014