LAHORE
After the arrival of first liquefied natural gas (LNG) shipment from Qatar in Pakistan, the Sui Northern Gas Pipeline Limited has announced to start supplying gas to the textile industry in Punjab for 24 hours after a long period of about six years.
Punjab textile mills, which were presently receiving gas just for four-six hours a day, started getting re-gasified liquid natural gas (RNLG) from Wednesday night at a cost of $6.66 per Million British Thermal Unit (MMBTU). The total demand of the Punjab textile mills captive power plants is around 200 MMCFD. The gas supply to mills will also save electricity of 1000MW, which can be converted to other industries.
The Sui Northern Gas Pipelines Limited had posted the price of RLNG supply on 24/7 basis and the industry had started securing allocation of gas for the month of March.
According to official sources, the initial Qatari gas shipment was actually meant for the IPPs to produce electricity but they were unable to purchase RLNG on immediate payment due to circular debt issue. In this backdrop, the ministry decided to supply the gas to the industry which is ready to make full payment without any delay.
APTMA former chairman and patron-in-chief Gohar Ejaz said that with the supply of RLNG, the Punjab industry’s problem of disparity, affordability and viability has been resolved to a large extent, which the industry was facing for the last six years. He said that the industry had been asking for availability of energy at affordable price to compete regionally. At present, the government is supplying the RLNG at $9.8 per MMBTU, which has been reduced to $6.66 per MMBTU from Wednesday night.
Gohar Ejaz said that a regular supply of RLNG on 24/7 would clear the production scenario ahead. The SNGPL was presently supplying Sui gas for four hours a day at present at a cost of Rs 7 per MMBTU. The situation would change altogether with the addition of RLNG to the system at a regionally affordable price, he added.
Gohar Ejaz was of the view that injection of 400 mmcfd LNG into Pakistan’s gas transmission and distribution system will immediately stimulate economy, particularly the large scale manufacturing (LSM).
He said that the textile industry is vying to reduce its cost of doing business, particularly the cost of energy, which is almost 60 percent higher as compared to the regional competitors.
“Electricity to the textile industry in the region is not more than 9 cents per kilowatt hour against 14.5 cents per kilowatt hour in Pakistan at present,” he added.
APTMA Punjab chairman Amir Fayyaz said that only the continuity of textile industry operations can ensure exports and employment in the country.
“If the government properly patronised the industry, we have the potential to convert our current value added exports of Rs 5 billion into Rs 15 billion per year.”
According to energy experts, gas availability for domestic sector in next winter will increase up to 80 percent in the Punjab and other sectors of economy, including power, industrial and fertilizer.
According to them, the second Liquefied Natural Gas (LNG) shipment from Qatar, under the recent government-to-government sale purchase agreement, would arrive at Port Qasim in Karachi on March 8. The first ship carrying approximately 141,000 cubic meters LNG had docked on March 1 at the Elengy LNG terminal, from where the imported gas is being injected in the system of Sui Southern Gas Company for onward supply.
They said that the LNG import is the only cheapest and instant remedy for the energy-starved Pakistan as its major gas reserves are depleting fast and the supply-demand gap is widening. The LNG is being considered essential part of energy-mix needs of world’s emerging economies, as the world is turning towards it. They said global and emerging economies such as China, Korea, Japan, India, Thailand, Indonesia, European Union and Brazil were ensuring that LNG should remain part of their energy-mix requirements. They said Japan was importing 80 million tons of LNG every year and India 15 MTPA due to the commodity’s cheap price and efficiency as compared to other fuel.
Due to the gas shortage in the country, there are a number of user groups that desires the fuel and the lucky ones to receive it are from the fertiliser, power and other industries. The textile and many other industries have approached the Ministry of Petroleum for LNG supply. Three power plants of 1,000MW each based on LNG are being set up in Punjab and smaller LNG-based power plants are also being set up in different parts of the country.