Line pack still under stress despite major cut in local gas flow

ISLAMABAD: In a significant development on Thursday, the country’s primary local gas fields reduced gas supply by 342 mmcfd to just 467 mmcfd from 809 mmcfd on April 11, 2024, solely to prevent the gas transmission system from possible breakdown.

However, there is still no relief in the line pack of Sui Northern System as gas volume pressure has further escalated to another dangerous level of 5.155 bcfd as of April 25, 2024.

“We have substantially reduced the gas supply from local gas fields, but there is no alleviation in easing the pressure in line pack as the power sector has not increased RLNG offtake as per its demand,” relevant officials at the energy ministry informed The News.

However, they cautioned that the practice of decreasing local gas flow to safeguard the gas transmission system was perilous. Sometimes, wells nearing depletion are compelled to reduce natural gas flows, causing irreparable damage, and they cannot recharge to their original flow levels. They require capital-intensive investment through artificial lift methods to resume production.

“This reduction in gas flow from local gas fields poses significant risks to maintaining the current local gas production level, but authorities are left with no option to ease the pressure. Furthermore, the consumption of RLNG by the industrial sector is also declining. Gas companies are forced to divert RLNG to the domestic sector, which does not require excess gas in both the load centres of Punjab and Sindh, as summer has set in both provinces.”

According to the latest data as of April 25, 2024, the per day RLNG intake in the country stood at 998 mmcfd. Due to the reduced usage of RLNG, the line pack increased to 5.155 bcf, exceeding the limit of 4.5 bcf. “We cannot halt LNG imports as the country has agreements with Qatar for nine cargoes a month and one cargo from ENI. Any delay in re-gasification would incur demurrage costs. Thus, the authorities are compelled to scale down gas flows from local gas fields.”

As of April 25, the power sector consumed 552 mmcfd -- slightly higher due to interventions by top authorities to alleviate pressure in the transmission pipeline, which currently holds 5.155 bcfd. However, RLNG consumption by other sectors remains significantly lower. The gas consumption in the fertiliser sector stood at 42 mmcf. However, gas consumption by Engro Fertiliser was suspended on April 22, 2024, due to the startup of the annual turnaround of their plant for about 54 days, and the usage of RLNG by Agritech Fertiliser has been suspended since April 16, 2024, due to the startup of the annual turnaround of their plant for about 15 days.

In the Sui Southern system, the line pack stands at 2.003 bcf while on Thursday it had an RLNG intake of 92 mmcfd and an indigenous gas supply of 730 mmcfd. The power sector in the SSGC system on Thursday consumed local gas of 30 mmcfd and 25 mmcfd RLNG. However, the average consumption in the industry (export and non-export) remained at 330 mmcfd.