Status of gas connections: Owners of CPPs seek clarification from ministry

LAHORE: Captive Power Plants (CPPs) owners are waiting for a clarification from the ministry of energy regarding the status of their gas connections after receiving notices from Sui Northern Gas Pipelines Limited (SNGPL) for separate industrial connections.

According to a letter written by the SNGPL management to the ministry, a clarification has been sought pointing out that pursuant to Supreme Court order dated 10.03.2020, notices were served to all such industrial units which were engaged in power generation from existing general industrial gas connection, to obtain separate gas connection for power generation.

A number of consumers have positively responded to our requests for obtaining separate captive power gas connection and their applications are at different processing stages. Most of the applicants have already completed the formalities including the deposit of security, service line charges, etc., and their connections are at an advanced stage of processing.

It may be noted that the SNGPL has made it clear that no new captive power gas connection would be provided to such industrial units where grid connectivity is available as it is not clear which parameters should be considered while determining grid connectivity because there are a number of scenarios that can exist like the WAPDA network exists but connection not installed, WAPDA network is available in the locality but not in front of the industrial unit and if WAPDA network is not available in the vicinity/locality etc.

The letter, a copy of which is available with the Business Recorder, has sought a clarification from the ministry as to whether such captive power applications will continue to be processed or not.

Also, the letter has pointed out that pursuant to the relaxation of moratorium by the government on new gas connections including load enhancement of existing consumers, the SNGPL allowed such requests on RLNG basis. A number of load enhancement requests of existing captive power consumers are also pending at different stages.

Copyright Business Recorder, 2021