SNGPL begins disconnecting gasconnections of captive power plants

LAHORE: Sui Northern Gas Pipelines Ltd (SNGPL) has begun disconnecting natural gas connections of captive power plants as per policy announced last year, it was learnt on Tuesday.

“Without any prior notice or intimation, the gas utility has abruptly started to disconnect those captive power gas connection which don't have cogeneration facility,” claimed a textile industry representative, wishing to remain anonymous. Those captive power plants that have no boiler installed were being shut as per policy announced last year.

Moreover, gas supply to the rest of the export-oriented industry was being continued, but with lower volume quota. He said that no load management schedule has yet been received for winter.

It was learned that the SNGPL suspended gas supply to captive power plants due to increased consumption by domestic consumers in view of change of the weather.

When contacted, an official of SNGPL claimed that gas supply to export-oriented textile units and domestic consumers had been assigned top priority. He assured that gas utility would continue to provide natural gas to such consumers on priority basis.

However, it was learnt that natural gas supply to several units in Faisalabad has been suspended abruptly. Last year, it was decided that natural gas supply would only be restored to captive power units having no backup power connection and these units would have to be eventually switched to grid-power in due course. It was agreed that gas would be provided to them on best effort basis as per the priority order.

Most of the mills have standby power connections. They have shifted already on grid power. The very few that do not have power connections were being supplied gas until they switchover to grid-power. These units were now no more eligible for gas supply continuation.

Textile industry claimed that owing to multiple challenges, businesses were getting hit. Resultantly, thousands of power looms were closed and workforce being retrenched. Expensive raw material, high energy prices and slowdown in economy has hit the industry hard.

Last week, All Pakistan Textile Mills Association (APTMA) urged Prime Minister Shehbaz Sharif and provincial chief ministers to save the textile industry after Sui Southern Gas Company (SSGC) halted supply to industries.

“The federal and provincial governments should take measures to save industries from complete shutdown,” APTMA chairman had said, urging the chief executives to stop SSGC from halting gas supply to industries.

He further said that the step would further decline exports and dollar would surge more. “Halting of gas supply will shut down industries and increase unemployment across the country,” he warned. “Sindh and Balochistan were producing more than 80 percent of the gas,” he said, adding that SSGC could not take decision without taking stakeholders into confidence.

The chairman added that the industries were already facing issues due to low pressure and were failing to fulfil export orders.