ISLAMABAD: The Sui Northern authorities have reduced the gas outflow by 250-300 mmcf from the local gas fields in order to tackle the RLNG glut and save the national gas network as the line pressure in the main gas pipeline continues to be above the danger mark of 5bcf mainly because of less use of imported gas — RLNG — by the Power Division in RLNG based power plants.
Right now, the power plants are using 252 mmcf RLNG against its demand of 400 mmcf. According to the latest data as of February 11, 2025 available with The News, 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. “We have 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, leading to high system pack or pressure across the entire transmission network,” says Sui Northern.
However, the 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, top official sources confirmed to The News.
The Petroleum Division says the government is in long-term agreements with Qatar and ENI. Qatar has already deferred 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 the international market which were to come in February and March respectively.
The Sui Northern earlier in its letter to the PLL managing director, requested for diversion of all 11 cargoes of ENI after failing to sell the RLNG in the country. The Sui Northern wrote the said letter after the Power Division 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 will 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, standing at Rs26-27 per unit. The government is already trying to convince Qatar to defer five more LNG cargoes to 2026.
As per the latest data, the domestic sector gas demand has increased to 950mmcfd, and 450mmcfd RLNG is being diverted to residential consumers. However, 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 the gas circular debt taking it to Rs2,900 billion from the existing Rs2,700 billion.