DNA

KARACHI  – Mian Anjum Nisar President Federation of Pakistan Chambers of Commerce and Industry has shown his serious concern and urged the Government and Gas Company to immediately restore gas supply with required pressure to overcome the supply and demand gap of energy.

President FPCCI said that the businesses and industries are already passing through un-conducive business conditions of high cost of inputs and poor deteriorating infrastructure. Our export industry after COVID-19 was recovering fast but unfortunately due to interrupted gas supply, followed by electricity shut downs, the production of goods for export has suffered 30 percent reduction. The management of SSGC has failed to respond to complaints by industry in last three months. There is no reason of short and interrupted supply of gas to industry which amount to only 350 MMCFD of total daily input of SSGC of 1450 MMCFD.

He further informed that the Gas prices have been on the rise in last couple of years making RLNG cheaper than local natural gas. He informed that 1200 MMCFD of LNG import facilities are installed, 600 MMCFD each by ENGRO Vopak and PGPCL. At present, consumption of RLNG import, 300 MMCFD of un-utilized capacity is available at PGPCL RLNG terminal.

Government should immediately arrange import of additional four cargoes per month of LNG to ensue industry gets required gas.

He further informed that Pakistan produces around four (4) Billion Cubic Feet Per Day (BCFD) of indigenous natural gas against an unconstrained demand of over six (6) BCFD. To meet the shortfall, the Government has initiated the import of LNG.  At present, the capacity of two Floating Storage and Re-gasification Unit (FRSU) to Re-gasified Liquefied Natural Gas (RLNG) is 1200 MMCFD, but unfortunately only 800-900 MMCFD of RLNG is being imported.

President FPCCI also said that the present local gas supply to captive power is Rs.1021/MMBTU equivalent to US $ 6.1/MMBTU. While RLNG OGRA prices for distribution is approximately US $ 6.5/MMBTU. For industry usage local gas prices and RLNG prices are same.

Mian Anjum Nisar President Federation of Pakistan Chambers of Commerce and Industry urged the government to ensure uninterrupted gas supply to industry in Karachi and throughout Pakistan by meeting shortfall in the coming months.