Gas deficit starts haunting masses: CPPs to be closed down for two months to attain 70mmcd gas

ISLAMABAD: With the view to cope with gas shortfall, the government has decided to close down the RLNG supply to captive power plants (CPPs) for two months of December and January to attain 70 mmcfd gas for 60 days but, in return, the industry will be provided electricity at 7.5 cents per unit. Industry will be provided reduced tariff against the electricity that it was getting through captive power plants.

"This issue has been agitated in the Cabinet Committee on Energy (CCoE) that met on Thursday and in the meeting Adviser to Prime Minister on Commerce, Textile and Investment Abdul Razak Dawood took up this very issue, pleading that the government should not cut the RLNG supply to captive power plants as the industry has plenty of export orders. If it is indeed inevitable to close down the gas supply to cope with gas deficit, then the government should provide the industry 7.5 cents per unit," one of the participants of the meeting while quoting the adviser told The News.

In the CCoE meeting, the participants agreed to the arguments of Dawood and approved the summary, saying that subsidy was involved in the issue as industry wanted the power tariff at 7.5 cents per unit for abandoning the usage of RLNG for two months. “The CCoE approval will be taken either by ECC or cabinet for final nod.” The export industry is being provided RLNG at $6.5 per MMBT and electricity at 9 cents per unit.

Meanwhile, the gas crisis has started haunting people as the Sui Northern has closed down the RLNG supply to CNG sector, pleading that Sui Southern has retained its 200mmcfd RLNG. Sui Northern spokesman says unless and until the private sector provides the RLNG of 150mmcfd to K-Electric for three months, Punjab will not be able to get 200 mmcfd, which the Sui Southern has retained for its system. Shahid Sattar, Executive Director of All Pakistan Textile Mills Association (APTMA), when contacted, confirmed the development, saying CCoE has approved tariff at 7.5 cents for electricity being generated through captive power plants.

“We are producing electricity at the cost of Rs10 per unit (6 cents) through CPPs being run on RLNG, which is being consumed by the industrial sector making a pivotal role in boosting the exports of the country."