Gas supply to captive power plants may resume conditionally.
According to the report, the government may resume gas supply to some of the country’s captive power plants on a conditional basis since it is anticipated to achieve an agreement with the textile industry in their tariff and priority order issue negotiations.
The Ministry of Energy’s Petroleum Division is currently in discussions with members of the All Pakistan Textile Mills Association (APTMA) and Sui Northern Gas Pipelines Ltd (SNGPL) to determine the best course of action.
According to sources familiar with the situation, the textile industry will drop all pending legal cases in exchange for the government restoring natural gas supply.
According to the Cabinet’s priority order, which prioritises process gas above captive power plants, the gas will be given to them on a best-effort basis.
More than 90% of the mills are equipped with standby power. They’ve already switched to a 9-cent-per-unit tariff.
As Gas supply to captive power plants may resume conditionally, the few who do not have access to electricity will be given preference over the rest until they can convert to grid power, which will be available in about a month.
