LAHORE

The Sui Northern Gas Pipelines Company Ltd (SNGPL) will supply 60 MMCFD LNG to textile industry in Punjab. The gas utility has already restored gas supply to the industry for four hours a day after a brief suspension.

The 60 MMCFD LNG, which will fulfil requirement of around 300 mills in Punjab, will be provided at the cost of $9 per MMBTU. According to industry sources, negotiations are underway over price issue as the industry is demanding LNG supply at the rate of $8 per MMBTU while government was pressing the millers to purchase the liquefied gas at $10 per MMBTU.

All Pakistan Textile Mills Association central chairman Tariq Saud has appreciated the government for providing 60 MMCFD LNG to the Punjab textile industry in winter, which would avert the threat of a complete closure of mills due to the high cost of doing business.

“This single step suggests that the federal government is serious in resolving textile industry issues,” he added. He further recalled the candid attitude of the Prime Minister Nawaz Sharif in September 11 meeting with textile industry representatives, which has opened up the path of relief to the energy-stricken textile industry.

“The APTMA is of a considered opinion that the government has always taken the textile industry as a mainstay of economy and is all serious on lessening its burdens in line with the regional competitors,” he added.

Tariq Saud urged the government to immediately announce remaining part of the textile package, which includes 5 percent rebate on exports and zero rate regime throughout the entire textile value chain, extension of Export Refinance to spinning and weaving sub-sectors, introduction of safeguards through tariff and non-tariff measures against the inroads of synthetic yarns and fabrics in domestic market, removal of electricity surcharge and GIDC and availability of incentives in the export market by matching the regional support package.

Aptma Punjab Chairman Aamir Fayyaz said many textile millers are still objecting the rate of LNG but still a good number of them would opt for availing the opportunity of gas availability even at $9 per MMBTU to avoid total collapse.