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June 29, 2020

RLNG diversion to power sector leaves textile sector in the lurch

National

June 29, 2020

ISLAMABAD: The non-availability of required quantity of furnace oil for power sector has massively shifted the burden for power generation towards the RLNG-based power plants owing to which massive flow of imported gas is being ensured to RLNG-based power plants.

This has virtually left the export-oriented textile sector in the lurch as industrial plants have started experiencing low pressure. Because of the low pressure in RLNG supply, the industrial units are not running up to the mark, resulting in less production of export products fearing Pakistan will not be able to fulfil export orders.

And more importantly, domestic gas supply has also been curtailed due to the non-lifting of crude which is a necessary by-product of gas production and domestic gas fields as a consequence have been shut as all storage for crude is full and sufficient RLNG was not procured to tackle the decrease in domestic production of gas.

All Pakistan Textile Mills Association (APTMA) on June 26 wrote a letter to Secretary Petroleum Mian Asad Hayauddin informing about the gloomy picture of gas availability, saying that COVID-19 had adversely impacted textile exports, but industry is on the way to recovery and unless it is unable to meet the export order deadlines, fresh orders would be difficult to obtain.

Under the new scenario, textile industry is facing severe difficulties in operating plants due to low gas pressure. “Normally, we are extended 200 mmcfd which has been reduced to 120 mmcfd because of massive RLNG supply diversion to power sector,” Shahid Sattar, Executive Director of APTMA, told The News.

APTMA said in the letter that gas pressure at various points is insufficient to operate plants and factories, and requested for availability of the required RLNG to textile sector with full pressure so that the industry can keep operating.

The data showing RLNG supply to various sectors of economy available with The News shows that only 145 mmcfd RLNG is being supplied to the industrial sector out of which 120 mmcfd is provided to the textile sector which was earlier being supplied 200 mmcfd. And now 120 mmcfd RLNG with low pressure is being supplied to the textile sector that has resulted in low production of export products.

Out of total imported RLNG of 770 mmcfd, a major chunk of 577 mmcfd is being given to the power sector.

The remaining RLNG is being supplied to other sectors, which include one mmcfd to fertiliser, three mmcfd to cement, 145 mmcfd to industry, out of which 120 mmcfd is provided to textile sector and 25mmcfd to CNG sector. 577 mmcfd RLNG being given to power sector, the RLNG of 2 mmcfd is being to M’Garh power plant, 28 mmcfd to Fauji Kabirwala Power Company Limited (FKPCL), 57 mmcfd to Nandipur, 144mmcfd to Balloki, 150 mmcfd to Haveli Bahadur Shah, 15 mmcfd to Halmore, 151 mmcfd to Bhikki RLNG-based power plant, and 30 mmcfd RLNG is being supplied to Saif power house.