Billing of LNG (Liquefied Natural Gas) by SNGPL (Sui Northern Gas Pipelines Limited) over and above the agreed price of US $9/MMBTU is tantamount to sabotage the sincere efforts of the Government to drag out textile sector from the protracted crisis, said Syed Zia Alamdar Hussain Senior Vice President Faisalabad Chamber of Commerce & Industry (FCCI).
Expressing concerns over the bills dispatched to the industrial sector by charging $10.5/mmbtu of LNG, he said that it is sheer violation of the agreed price and would once again put the value added textile sector into deep crisis. He said that textile sector was the major foreign exchange earning sector of the national economy which was also providing maximum jobs to the youth in addition to generating much needed revenue for the Government.
He appreciated the Government's role and said that it was fully aware of the importance of the value added sector and it was in this context that Finance Minister had issued clear instruction to provide LNG during the current winter season. Syed Zia said that they had comprehensive meetings in Islamabad which was also attended by the Federal Minister for Petroleum Shahid Khaqan Abbasi, State Minister Abid Sher Ali and Federal Parliamentary Secretary Rana Afzal Khan on December 15, 2015. All the participants agreed that the textile industry must be facilitated to keep its wheel running as it will generate much needed foreign exchange for the country.
He said that on the very next day, a meeting was held in the head office of SNGPL for determining the tariff of imported LNG. He told that once again they had a meeting in the office of Federal Finance Minister on December 17, 2015 and it was finally decided that the industrial sector will be provided imported LNG @ $9/MMBTU as Government was sincere to give relief to it. SVP expressed concern over the issuance of bills in contrary to the agreed tariff by the SNGPL and said that this situation has perturbed the entire textile chain and this step will ultimately make our textile exports uncompetitive due to the high cost of doing business which is already highest in the region.
Continuing Syed Zia said that international price of LNG is around $4/MMBTU and charging 10.5 Dollar for this product is highly objectionable. He said that during last two months, prices of oil and gas have further depreciated. Similarly, the price of crude oil in international market is below $4/barrel and charging $10.5/MMBTU is very discouraging.
He has made a humble appeal to the Finance Minister to immediately intervene and direct SNGPL to charge the agreed tariff instead of sending inflated bills. He warned that the over-billing will not only affect the prestige of the Government but also put industrial sector once again in the crisis. Hence Government has to take immediate action with the clear directive that the SNGPL will charge agreed tariff @ $9/MMBTU for imported LNG.
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