Gas supply to industrial sector also stopped

LAHORE: The industrial sector that has been exempted from gas cuts got a direct hit on Thursday with curtailing of supplies to captive power plants.

According to an announcement, natural gas supply has been stopped to all captive power plants till further order. Earlier, gas quota of export-oriented industrial sector had been reduced to one-third, which invited severe criticism from textile sector.

The Gas/ Regasified Liquefied Natural Gas (RLNG) supply issues continue to plague captive plants of the export sector. The government gave them an assurance that the full gas supply would be restored soon. However, instead the government abruptly cut gas supply to one of the crucial sectors of economy, leaving mills effectively at operating 70 percent capacity.

Due to squeezing energy supplies, an export target of $21 billion has been revised downward to 20 billion dollars for the textiles and apparel industry for FY 2021-22. The textile sector’s expansion and opening of new factories was expected to propel exports further, but unfortunately these new units did not receive gas or electricity supply and were consequently unable to launch successfully.

Meanwhile, power shortfall recorded on June 02, 2022 at 9pm swelled to highest level of 6,822MW. It means effective deficit at power distribution level surged to more than 7,750 MW, which is yet another record level. And ordeal of masses has not ended here on account lingering energy crisis. It is going to rise further, said an official. The government has told CPEC coal plants informally not to buy coal due to high prices. Imported fuels are too expensive to add to energy mix.