Ministry of Petroleum and Natural Resources has expressed concerns of the underutilization of the Re-gasified Liquid Natural Gas (RLNG) by the industrial consumers. Reliable sources said the ministry has started probing the reasons behind the phenomenon, asking the industrial sectors to help it out in this regard. It is learnt on good authority that the ministry has shown concern over the underutilization of RLNG by the textile industry, CNG sector and the Independent Power Producers (IPPs).
Sources said the textile industry had sought an allocation of 200MMCFD but the industry has yet to meet this demand despite an across the board allocation by the Sui Northern Gas Pipelines Limited. Similarly, the IPPs are not yet inclined to utilise RLNG and utilising furnace oil for power generation. The CNG sector has also not been revived yet in the country, the sources added.
Meanwhile, the shipments of RLNG are arriving on the Port Qasim one after another, which is turning into a concern of the ministry. The sources said the ministry has started engaging the stakeholders to understand the situation and a number of meetings have taken place so far.
The industry sources said the revival of the industrial sector would yet take time before operating on full throttle. They said a reduction in the oil prices internationally has led to the excessive use of furnace oil by different industrial sectors. They said the industrial sectors, particularly the textile industry, has installed diesel engines for power generation and availability of cheap furnace oil has attracted many to avail the opportunity. Furthermore, an uncertainty regarding smooth supplies of RLNG during the summer season has also gripped the industrialists, who believe that the government would shift the supplies to the IPPs to meet domestic demand.
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