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Govt decides to increase RLNG import up to 1.4bcfd

By Khalid Mustafa
February 14, 2019

ISLAMABAD: The government has decided to lay down another 17 kilometre pipeline connecting the LNG terminals to the system of Sui Southern so that the LNG import in the country can be increased to 1.4bcfd with an addition of 200mmcfd keeping in view the increasing demand of the imported product in the country.

The domestic gas fields are depleting, but the demand is increasing and whenever the cold wave worsens, the demand of gas suddenly increases. Apart from it, other than power sector, the demand of other sectors of economy is also on the rise and to cope with burgeoning energy demands, the government has decided to increase the LNG import by 200mmcfd more for summer season as the existing LNG terminals has additional capacity to re-gasify LNG up to 200mmcfd.

PGPL terminal has additional capacity to re-gasify 150 mmcfd and Engro terminal 50mmcfd. The government has extended the off take guarantee to both LNG terminals; one is owned by Engro and other one by PGPC against 1.2 bcfd (600mmcfd from each terminal). PGPL terminal has total capacity to re-gasify 750 mmcfd while Engro terminal has 650mmcfd. Now the government has decided to increase its import to 1.4 bcfd from 1.2 bcfd and to ensure the increase of 200 mmcfd LNG, another 17 kilometre gas pipeline will be laid down. This vital decision has been taken in the meeting of Cabinet Committee on Energy.

If the government will also extend the off take guarantee for additional import of 200 mmcfd, Mr Sher Afgan said he didn’t know about it exactly. However, he reckoned the government will not extend the off take guarantee as it has already given the off take guarantee for 1.2 bcfd.

The CCOE, he said, has also allowed power division to build up the furnace oil stock also power generation during summer season in case of emergency. However, the government will try its best not to use the furnace oil based power plants in summer. The furnace oil stock will be built through the indigenous resources of local refineries as furnace oil will not be imported.

Another senior official who also attended the CCOE meeting said that petroleum division has told that RLNG for power sector will be available in the range of 900-950 mmcfd for next 6 months, 180 mmcfd for zero-rate industry, 70 mmcfd for fertilizer and 60 mmcfd for CNG sectors.

When asked if CCOE has looked into the reasons for gas crisis in Karachi, the official said that chair has asked for exact data for gas consumed in domestic, commercial and industrial sectors when the gas crisis had hit Karachi some 15-20 days back. The relevant official told that Petroleum Division will send the required data within 2-3 days to Finance Minister Asad Umar.

Top leadership of Sindh government has been agitating since long that its province is sustaining huge gas shortage arguing that it produces 3000 mmcfd gas but in return it is being supplied only 1200 mmcfd gas. Sindh Chief Minister Mr Murad Ali shah has been demanding from the federal government to end step motherly treatment and provide its due right of gas under the Article of 158 of the Constitution which clearly says the federating unit that possesses the gas reserves has first right to consume it and if its needs are catered, then the additional gas should be transferred to the province that has less and no gas.

The official said the demand of gas in Sindh has increased manifold some days back in the wake of less temperature that gripped Karachi because of severe cold in Quetta. ‘’However, the maximum gas is being provided to Sindh province.’’