LAHORE, Oct 8: The textile industry on Monday called for immediate implementation of a government decision to import 200mmcfd liquefied natural gas (LNG) on fast track basis by a special purpose vehicle (SPV) a joint venture of the Sui Southern Gas Company Limited, the Sui Northern Gas Pipeline Limited and any interested private investor(s) to bridge looming shortages in the fast approaching winter.

The Economic Coordination Committee (ECC) last week decided to import 1bcfd of LNG per day through two long-term projects of 400mmcfd each to be completed in over 30 months and a short-term project of 200mmcfd by SVP through fast track process to be completed in 12 to 18 months.

Gohar Ejaz of All Pakistan Textile Mills Association (Aptma) told Dawn on Monday that the industry wanted immediate implementation of the short-term project.

“The government should immediately create the joint venture company (of SSGCL and SNGPL) to import LNG by SVP. Private sector is ready to buy 26 per cent of the total equity of the company. But its management should be in the hands of the industry representatives,” he said.

He said the immediate formation of the joint venture company was important to start work on the creation of infrastructure for import of LNG as well as to locate availability of the special ship equipped with liquid gas storage and its re-gasification.

“We have already wasted a lot of time. Further delays in the implementation of the project will only result in industrial closures and job and export losses, something the country can hardly afford at the moment,” he said.

In answer to a question, Gohar said the industry was focusing more on the completion of the short-term SVP project because the two long-term projects integrated projects in the private sector required a lot more time for implementation, which the economy could hardly afford.

“Besides, the long-term projects involve several other issues. As opposed to the SVP project to be completed by the funds (Rs30bn) raised from gas infrastructure development cess (GIDC) on the industrial consumers, the private sponsors of the long-term projects of 800mmcfd could take more than three years to actually implement them because of the involvement of banks for raising funds for the creation of LNG terminals, demands of LNG suppliers for long-term supply contracts and sovereign guarantees, etc.

On the other hand, we do not have a funds issue for the SVP project. The SSGCL also has a terminal where only facilities for offloading LNG from the ship into the gas company’s system are to be created. So we think the SVP project can be implemented without the hassles that the other two long-term LNG import projects could face.

Additionally, the joint venture company can keep building the capacity of the SSGCL terminal for increasing quantity of imported LNG,” he said.

Gohar further asked the government to also enter into a government-to-government agreement with India for laying a 50km pipeline from Bathinda to Lahore for import of 200mmcfd gas from there. India’s has already extended the offer for the same, he said.

He said this could help add 200mmcfd gas to the SNGPL system in the next 90 days, before shortages peak on rising domestic demand during winter.