ISLAMABAD: The Sui Northern Gas Pipelines Ltd (SNGPL) has reported misuse of recently imposed grid levy on gas supply to industrial captive power plants (CPPs) under the instructions of the International Monetary Fund (IMF) to its disadvantage and has demanded an urgent intervention of the government to ensure a level playing field.

In a letter to the Ministry of Energy, the Lahore-based public sector entity has bemoaned the imposition of a Rs791 per million British thermal units (mmBtu) levy on natural gas and imported liquefied natural gas (LNG) to CPPs, which would gradually increase fourfold by next year.

It stated that the SNGPL was compelled to supply gas and RLNG to CPPs at a higher cost, as per the IMF’s instructions. However, the resultant unsold gas was being diverted to third-party suppliers, who provided it to SNGPL customers without applying the grid levy.

The sources in petroleum ministry stated that the SNGPL grievance stemmed from........

© Dawn Business