PAKISTAN GAS CRISIS TO WORSEN IN JANUARY 2021

  • Sui Northern will face a gas shortage of about 500 mmcfd.
  • Authorities may also go for RLNG supply cuts to the export industry once a week next year.
  • SNGPL has shutdown down RLNG supply to captive power plants meant for the non-zero-rated industry.

ISLAMABAD: The gas crisis in Pakistan will worsen in January next year as a gas shortage of about 500mmfcd is expected in the system of Sui Northern.

Sui Northern will be left with no option but to close down RLNG supply to the power sector.

After placing a cut of RLNG to the power sector, the authorities will be able to divert 250mmcfd to the domestic sector, but it will continue to face a gas deficit of 250mmcfd.

It is expected that during January 4-20, 2020, the gas shortage will heighten because of failure in getting hold of three cargoes of LNG as the bids were received at a fixed price in dollar terms at $12.95 to $15.95 per mmbtu and the government decided not to procure the pricey LNG.

Pakistan LNG Limited (PLL) wanted to procure six spot cargoes for January, but when the bids opened on December 10, 2020, international LNG suppliers for the first time didn’t turn with bids for the LNG vessels required for the time slot of January 8-11, 2021, January 12-14 and January 14-15, the publication underscored.

SNGPL shuts down RLNG supply to captive power plants

Given the surge in gas shortages in the country, Sui Northern Gas Pipelines Limited (SNGPL) has shutdown down RLNG supply to captive power plants meant for non-zero-rated industry (general industry).

Top officials of the Petroleum Division told The News, that the supply of RLNG to CNG and fertilizer sectors has already been stopped.

“Surge in gas shortfall has recently appeared because of the fact that the LNG cargo from Nigeria, which was due to arrive on December 18, has been delayed by four days and will now be decking at Port Qasim on December 22.”

According to top sources, the LNG vessel got delayed as in the loading port, the cargo was exposed to fire.

However, the government of Pakistan is to decide if it penalises the LNG supplier for providing the LNG cargo with a delay of four days or not.

Reduced gas pressure leaves citizens miserable

The gas pressure in the domestic sector in the main cities of Punjab and KP has reduced to an extent that it is not possible to cook food on a low flame.

Top official sources said the authorities have diverted to the domestic sector in Punjab and KP, RLNG of 35 mmcfd and 60 mmcfd by closing down gas supply to general industry and CNG sector respectively.

Due to the delay of LNG cargo, the gas crisis has also aggravated in Balochistan and Sindh as Sui Southern Gas Company (SSGC) is not able to retain the RLNG of 200 CFD.

Read also:Cold conditions persist in Shehr-e-Quaid, mercury likely to fall further

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