Islamabad, Sep 9: At a time when the nation’s use of RLNG has drastically dropped, the Sui gas companies will suffer a loss of Rs420 billion as a result of the decision to follow the IMF’s guidance and move the industrial sector from gas-based Closure of CPPs (Captive Power Plants) to the national grid.
“Our CPPs, which are built for ecologically friendly industrial activities, bring in an annual revenue of Rs. 420 billion for us.
According to senior officials at the Energy Ministry, customers of protected gas are currently receiving a cross-subsidy of Rs 100 billion from the industry.
“There are 1,180 captive power plants in total. There are 383 in the Sui Northern jurisdiction and 797 in the Sui Southern system.
Since gas usage has decreased, it is becoming more challenging to sell the commodity in place of CPPs.
The line pack pressures in the main pipeline, which frequently surpass 5 bcf and endanger the entire national gas transmission system, make this quite clear.
More significantly, they stated that should CPPs lose their connection to the gas supply, it will not be feasible to keep the Rs. 100 billion secured gas consumer subsidies in place.
In this case, the federal budget’s subsidy of the protected consumers would have to be protected by the government.
“For this purpose, the Closure of CPPs (Captive Power Plants) will have to spend Rs20 billion for erecting grid stations of 11KV and 132KW.
The 11KV grid station will be completed in 6 months, but 132KV grid stations will take 1.5-2 years to get completed.”
