ISLAMABAD – Web Desk: In a major breakthrough for the long-stalled Saudi-backed Tuwairqi Steel Mills project, the Special Investment Facilitation Council (SIFC) has secured approval for gas supply — a critical requirement for steel production — after nearly two decades of deadlock.
The project was originally initiated during the tenure of former president Pervez Musharraf but remained incomplete due to disputes over gas supply at concessional rates. The current government has now decided to revive the project.
The Economic Coordination Committee (ECC) approved the gas supply while clarifying that gas availability and economic priority sequencing will be taken into account, and the government will have no binding obligation to ensure uninterrupted supply.
The ECC also decided that all future cases of major industrial consumers requiring over 10 MMCFD of gas must be brought before the committee. Additionally, the Petroleum Division was directed to review the 2005 natural gas allocation policy.
According to details, the SIFC’s Executive Committee reiterated recommendations for 50 MMCFD gas availability for the National Steel Complex at reduced rates, along with a separate industrial category for gas tariff.
In February 2025, the Petroleum Division submitted a summary to the ECC for supplying 45 MMCFD of gas at Rs 1,900 per MMBTU, but the Ministries of Finance and Planning did not support the proposal, stalling the process once again.
Sui Southern Gas Company (SSGC) had reportedly offered 40 MMCFD of gas to the National Steel Complex at OGRA-determined rates, but the company did not accept. The SIFC has now directed SSGC to issue a letter for a 10-year reliable agreement for 45 MMCFD gas, with an option for another 10-year extension.
The Petroleum Division has proposed that SSGC supply 40 MMCFD of gas for industrial needs and an additional 5 MMCFD for power generation at OGRA rates, after which both parties will finalize the gas supply agreement terms.
