LAHORE: After most stay applications against the Sui Northern Gas Pipelines Ltd (SNGPL) on supply to the industry were withdrawn on Tuesday, the company decided to start supplying 75 million cubic feet per day (mmcfd) of gas to captive power-run textile export industry from Wednesday (today).

However, an official source in the Ministry of Energy (Petroleum Division) said the SNGPL could ensure provision of 75mmcfd of gas to the industry over a long period only if it curtails supplies to gas-fired power plants in Punjab.

“The situation related to re-gasified liquefied natural gas (RLNG) supplies from liquefied natural gas (LNG) terminals have improved and may continue till the end of this week. However, if it deteriorates in the near future, which is quite possible keeping in view the increasing demand of the domestic sector, the company will have no option but to curtail RLNG supplies to power plants that may cause disruption in power generation and lead to loadshedding in Punjab,” the official, who requested anonymity, told Dawn on Tuesday.

RLNG provision to power plants may be curtailed if domestic demand increases

Answering a question, he said most of the stay applications against the SNGPL on the issue of gas supply to industry have been withdrawn by the petitioners and the remaining, if any, would be withdrawn by Wednesday (today).

Punjab reportedly needs three LNG cargoes in January to meet the increasing demand in all sectors, including domestic, which is presently receiving over 1,000mmcfd of gas these days. The government expects the arrival of one cargo next month, but the schedule for the remaining two is uncertain due to delayed order placement. If no cargo arrives by Jan 10, the situation could get out of control and lead to suspension of supply to all sectors, except domestic consumers.

On the other hand, the Gas Load Management Plan for winter 2021-22 is being implemented following a decision of the Cabinet Committee on Energy. Under the plan, the general industry (non-export) is being provided gas on a weekly rotation basis with one day off for each sector. The cement industry is also being treated on a par with the general industry. The plan also allows five per cent extra supply to gas-fired power plants during winter as compared to last year’s actual consumption.

Meanwhile, a spokesman for SNGPL said the decision was taken to facilitate export industries. “The government, SNGPL and the industrial sector have taken this decision unanimously to keep the textile industry running. Therefore, gas shall be restored from Wednesday morning,” the spokesman said in a press release.

The government, after an extensive meeting with the All Pakistan Textile Mills Association, Pakistan Textile Exporters Association and others concerned, had on Monday announced to provide 75mmcfd of gas to captive power-run textile export industry from Wednesday till March 31, 2022 subject to a written submission from the exporters that they would get the stay orders withdrawn immediately and their energy audits carried out till June 30, 2022.

Published in Dawn, December 29th, 2021