The All Pakistan Textile Mills Association (APTMA) has requested the government to allocate 300 million cubic feet per day (mmcfd) of Liquefied Natural Gas (LNG) to Punjab-based textile industry. A delegation of textile industry led by Tariq Saud, Chairman APTMA, met here on Friday with Federal Minister Petroleum and Natural Resources Shahid Khaqan Abbasi and presented the textile industry's request to the government.
In reply to the textile industry's request the Minister assured the industry that from first week of the March 2016, the government will enhance LNG supply to the industry. At present Punjab-based textile units are getting 60 mmcfd of LNG, which in March is likely to be enhanced to 120 mmcfd. Textile industry had served as a catalyst for the economic development of the country, contributing around 60 percent to the total export earnings.
The Punjab-based textile units are purchasing the commodity from the supplier at $9 per MMBTU as per ECC decision and now they are expecting that the price will come down around $6-7 per MMBTU which is almost equivalent to the local gas prices.
According to Ijaz Gohar, former president APTMA, the government at present was supplying four hours per day LNG to the industry at $9 per MMBTU and now the international commodity prices have significantly reduced and the industry is hopeful that the government will supply LNG to industry at around $6 per MMBTU. He said textile units in Punjab during past five years were facing worst kind of gas curtailment because of serious gas crisis as a result around two million people associated with the industry have lost their jobs. He added that now when the government had started importing LNG, provision of the LNG to industry would help creating jobs and enhance exports of the sector.
The APTMA delegation congratulated the Petroleum Ministry for inking long-term RLNG agreement with the Qatargas at 13.37 percent of the brent. PSO led initiative for five-year supply at the same rate would further augment RLNG supplies. APTMA requested the Petroleum Ministry to provide 300 mmcfd LNG supply for 24/7 requirement of the textile industry. This will greatly help the industry to operate mills at optimum level of production. APTMA member mills have already registered their interest for using RLNG and necessary supplemental agreements have been provided to SNGPL. Additionally, it is of note to submit that APTMA member mills are primarily energised on SNPGL's high-pressure distribution lines, which does not entail losses.
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