ISLAMABAD: Gas companies are raising alarms over the IMF-driven policy to shift industrial captive power plants (CPPs) to the national grid, fearing a loss of long-term clients to private competitors.
Pakistan LNG Limited (PLL) has sought government approval to import liquefied natural gas (LNG) for industrial use, citing supply constraints at Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL). However, SNGPL has strongly opposed this move, arguing that IMF conditions are being selectively applied, disadvantaging state-owned entities while benefiting private players.
Recent gas price hikes—from Rs3,000 to Rs3,500 per mmBtu, plus an additional 5% levy—aim to make CPPs’ electricity generation costlier, forcing their transition to the national grid. Despite this, SNGPL warns that many CPPs are instead shifting to third-party shippers offering cheaper indigenous gas, undermining IMF-backed reforms.
SNGPL claims the policy threatens its financial stability, with potential ripple effects on Pakistan State Oil (PSO) and the overall economy. It reports that RLNG surpluses could reach 400 mmcfd by 2026, forcing costly penalties on unused cargoes.
The company has urged the government to overhaul existing policies, arguing that all indigenous gas should be allocated to public utilities for fair pricing. It also calls for regulatory parity between public and private entities, similar to the oil sector, to ensure fair competition and prevent financial instability in the energy sector.
Story by Khaleeq Kiani
