By SKM
February 11, 2025
ISLAMABAD: The Sui Northern has scaled down the gas outflow of 250-300 mmcf from the local gas fields in the system just to tackle RLNG glut and save the national gas network work system as the line pack pressure in the main gas pipeline continues to be above the danger mark of 5bcf mainly because of the less use of imported gas —RLNG by the power division in RLNG based power plants. Right now RLNG power plants are using RLNG of 252 mmcf against its demand of 400 mmcf.
According to the latest data as of February 11, 2025 available with the Exclusivewaves.com.pk, the line pack is still at 5.058 bcf even after slashing down the local gas supply by up to 300mmcf and diverting one RLNG cargo to the international market.
SNGPL says it has curtailed the local gas just to avoid any untoward happening in the shape of damage to the national gas transmission system. The Power sector is continuously consuming less RLNG against the allocation. This situation has led to high system pack or pressure across the entire Transmission network.
However, local exploration and production (E&P) companies are quite upset, fearing that gas wells may not be functional with the required pressure in the wake of reduced gas outflows or closure of wells.
The Petroleum Division says that the government is in long-term agreements with Qatar and ENI. Qatar has already differed 5 LNG cargoes on government request which were to reach in 2025 and now Pakistan would get them in 2026. In addition, Pakistan LNG Limited (PLL) has also diverted two LNG cargoes of ENI to international market which were to come in February and March respectively.
The Sui Northern earlier in its letter to Managing Director PLL requested to divert all eleven cargoes of ENI after failing to sell the RLNG in the country.
Sui Northern wrote the said letter after Power Division has refused to increase the use of RLNG for power generation even during June, July and August—the peak summer season.
The Power Division says the electricity demand is going down and it would not run the RLNG-based power plants at the optimum level for power generation because these plants rank at the last of the Economic Merit Order (ECO) list. The electricity generation cost of RLNG power plants is at the higher side which stands at Rs26-27 per unit.
The government is already trying to convince Qatar to defer 5 more LNG cargoes to 2026. Qatar has already deferred the 5 LNG cargoes to 2026 which were to arrive in 2025 under the flexible clause of the 15 year contract.
Pakistan LNG Limited (PLL) and ENI in 2017 signed the 15-year contract under which ENI is bound to provide LNG cargo per month at 12.14 per cent of Brent. In the first and second year, ENI was supposed to provide LNG at 11.6247 per cent of Brent.
The gas consumption has gone down by 250 mmcf per month because of which 29 LNG cargoes have become additional.
As per latest data, gas demand of the domestic sector has increased to 950mmcfd, and RLNG of 450mmcfd is being diverted to residential consumers. But, the power sector is not consuming the RLNG intake against its demand of 400mmcfd.
Data shows the domestic sector is now the biggest consumer of RLNG, and its diversion will cost the system up to over Rs200 billion. The amount will appear in gas circular debt taking it to Rs2,900 billion from existing Rs2,700 billion. Ends
