Pakistan’s Economic Coordination Committee (ECC) approved the supply of up to 40 MMCFD natural gas to National Steel Complex Ltd (NSCL) for process requirements and captive power generation at applicable industrial tariffs, according to a report by Business Recorder.
The move is expected to support the revival of the former Tuwairqi Steel Mills Ltd (TSML), which has remained idle since 2013.
NSCL operates a direct reduced iron (DRI) plant based on MIDREX technology with annual production capacity of 1.28 mln tons. The project was commissioned in January 2013 with investment from Saudi Arabia’s Al-Tuwairqi Holdings and South Korea’s POSCO.
According to the report, the plant was shut down in September 2013 after disputes over gas pricing, as the company sought gas supply at subsidized fertilizer feedstock tariffs instead of industrial tariffs.
The report added that the issue remained under discussion for several years, including arbitration proceedings initiated by the Saudi sponsors against Pakistan in 2018. In December 2023, the arbitration tribunal ruled in favor of Pakistan and dismissed the claims.
In 2022, U.S.-based Ciena Group acquired management control of the company, which was later renamed National Steel Complex Ltd.