By SKM
July03, 2025
ISLAMABAD: The government has curtailed 315 mmcf (million cubic feet) gas from local gas fields putting the revival of wells with required natural pressure in jeopardy just to manage the line pack pressure that again exceeded the danger mark of 5 bcf (billion cubic feet)
The pressure is not being reduced even one LNG cargo a month from ENI – an Italian LNG trading company is being diverted to the international market from February 2025 and this diversion will continue till December 2025 because of reduced consumption of gas.
According to the line pack data as of July 3, 2025, the gas pressure in the main pipeline once again surpassed 5 bcf— a danger mark at which the main gas pipeline can burst any time exposing the country to a complete gas load shedding, partial but massive power outage and standstill of economic activities to a large extent. The last year almost most of the time witnessed the line pack pressure over 5bcf and the 2025 year is not different from the previous year so far. For some weeks, the line pack pressure came down to 4.2-4.5bcf, but it has again surged to over 5bcf.
The Exploration and Production (E&P) companies in the past raised main times the issue of closure of gas fields to manage the gas pressure in the pipeline arguing it is a quite detrimental to the depleting gas fields as most of those have not revived rather some sank because of the forced closures. And to revive those millions of dollars investment is required. The closure of gas wells means the halt of crude oil and LPG production. The deficit of crude oil and LPG will be imported at the cost of evaporation of borrowed foreign exchange reserves.
The data shows that the main pipeline remained vulnerable most of the time because of the line peck pressure, but for the authorities concerned it is now a routine handling of the imported LNG. The power sector is not consuming the imported gas as per the demand it places. The country cannot afford to be declared sovereign defaulter of Qatar as the LNG supply agreements involve sovereign guarantees and are based on ‘take or pay’ mode.
“We have deferred 5 LNG cargoes from Qatar to 2026 which were due in 2025, even then the LNG is not being handled as the consumption of the imported gas has dwindled manifold mainly for two reasons one is low growth in the country owing to which the demand of gas is not increasing and second is that the gas price has increased too much particularly for export industry. The price of gas for export industry is Rs3500 plus off-the-grid levy which has increased to 10 percent from 5 percent from July 1, 2025,” the relevant officials in the petroleum ministry told Exclusivewaves.com.pk.
“This bitter fact has prompted the export sector not to use the gas as in dollar terms the gas price stands at $15.38 per MMbtu which is far more than the price in the international spot price. The LNG agreements with Qatar, ENI and Gunvor were inked for smooth gas supply to four RLNG power plants of almost 4800MW in Punjab.” But these plants are not being run at the optimum level as the cost of electricity is higher by the said RLNG power plants and the power division says that when it does not meet the economic merit order, Power Division does not run them as the power generation from RLNG at the optimum level will cause a hike in the basket prices of electricity and the government does not want people face a hike in monthly FCA. “The government prefers to first run cheaper power plants based on local fuel. It also runs the must run power pants,” Power Division says.
According to the Petroleum Minister for Petroleum and Natural Resources, the four RLNG power plants were earlier declared as must-run plants whose status have now been changed by power division and this is the main reason that power sector is not consuming the imported gas at the maximum causing a glut in the system. “This issue has also forced gas Sui companies to divert imported RLNG to the domestic sector and this year RLNG of Rs242 billion has been diverted to the domestic sector causing a surge in the circular debt.”
SNGPL says continuous less RLNG consumption by power sector against their allocation, is causing high pressures across transmission system. Mitigation steps are being taken accordingly.
It also informs that 18” dia Shaheed Fahad Ashfaq pipeline ruptured between Kakakhel V/A and Darra Tang V/A at 0130 hrs on 02-07-2025 due to sabotage activity, resultantly around 43 MMCFD Gas from Shewa and 10 MMCFD gas from Bettani fields have been suspended since 0210 hrs and 0220 hrs respectively. Ends
