Govt not to import spot LNG cargo in January

ISLAMABAD: The government has formally decided not to import the much-touted LNG spot cargo in January next year to save precious foreign exchange.

“An important meeting was held on December 16, 2024, with Deputy Prime Minister Ishaq Dar which was also attended by Ministers of Industries and Production, Petroleum Division and high-ranking officials of Sui Northern,” says a letter of Sui Northern to the Petroleum Division written on December 17, 2024.

Relevant officials also told The News that the country will be importing 11 LNG cargoes under long-term agreements from Qatar and ENI next month.

The gas intake, they said, from local gas fields would also be maximized in January 2025, which is currently below 400mmcf from over 870mmcf, to manage the line pack pressure in the national transmission gas network.

The local gas production has currently been reduced by 50 percent, but the line pack pressure has increased exceeding the danger mark of 5bcf putting the gas transmission system in jeopardy just because of the minimum use of RLNG by the Power Division for power generation and import of 12 LNG cargoes in the current month of December.

“The overall gas consumption has tumbled manifold in the country mainly because of lower GDP growth and massive hike in gas prices. However, from December 26, 2024, hydro generation would be reduced to the maximum because of canal closures for desilting and deficit in hydro generation would be fulfilled through RLNG-based power plants. This is how the Power Division will start increasing the use of RLNG and this is how the line pack pressure in the national gas transmission network would climb down.”

However, the letter states that the gas shortfall in the range of 240-350mmcfd is anticipated during 10 days in the January 14-24 period — the peak wintertime, but the authorities have finalized the load management plan for the said period to mitigate the impact of deficit of gas.

As per the SNGPL letter to DG Gas in the Petroleum Division, the meeting held on December 16, 2024 decided that the supply to Fatima Fertilizer would not be suspended which was one of the RLNG consumers and it would continue to use RLNG of 45mmcfd. However, Agritech, a nitrogenous fertilizer plant that uses 27mmcfd gas, will be closed during the entire month of January.

“In addition, gas supply of 50mmcfd to the CNG sector will remain suspended for the whole month of January. The RLNG retention by Sui Southern would also be reduced by 25mmcfd. More importantly, gas supply to the captive power plants would be reduced by 50 percent to 75mmcfd on ‘as and when required’ basis.” The Sui Northern also indicated to the Petroleum Division that the domestic sector consumption was also likely to reduce by 50 percent in January 2025, based on the consumption trend owing to an increase in gas tariff over the last year. “The gas utility also mentioned that in January 2024, consumption of gas by the power sector stood at 320mmcfd. However, in the month of January 2025, the demand for 400mmcfd gas from the power sector has been received, which needs to be rationalized.”