SNGPL clarifies gas cuts

ISLAMABAD: This is with reference to the news published 25-12-2024 with subject “Local gas cuts cause $194m loss to economy in 4 months”.

The recent claims regarding the closure of indigenous gas fields in favour of imported RLNG require clarification. The gas was closed in some part of December when Power was not off taking RLNG per its demand. All the gas producing fields are open and producing gas per optimum production. Power has started picking up RLNG per demand for last 4-5 days.

It is highlighted that SNGPL system can store up to a maximum of 2 days of unutilized RLNG supplies in the pipelines as there is no separate gas storage facility available in the country.

The total curtailment undertaken in the last 4 months is less than 100 MMCFD while the figure of 329 MMCFD curtailment indicated in the The News today under the heading “Local Gas cuts cost US $194 million loss to the economy in 4 months” is not correct.

The curtailment is only undertaken in the low demand/lean months of the years when the Power sector fails to pick up in accordance with firm demand given by it. The gas fields operate optimally during the most parts of the year while the circular debt has also been addressed thru adjustment in gas prices. E&P companies are now getting regular payments for their gas supplies owing to GOP intervention in the matter.

Khalid Mustafa adds: The letters written by E&P companies along with the data to the Petroleum Division clearly say that in the last four months — August, September, October and November — the authorities have reduced the intake of system gas from local gas fields by 329 MMCFD which is quite evident from the data shared by them with the Petroleum Division. The data is following which paints a bleak picture: Sui (SML) reduced by 50mmcfd, Qadirpur reduced by 25 mmcfd, Mari (Ghazij + HRL) reduced by 70mmcfd, Mari-GTH reduced by 30mmcfd, Nashpa reduced by 45mmcfd, Togh reduced by 15mmcfd, Dhok Hussain reduced by 10mmcfd, Tolanj reduced by 4mmcfd, MOL reduced by 80mmcfd.

Total curtailment amounts to 329 MMCFD with monthly impact of $48 million. The News stands by its story.

As far as the payments by Sui Gas companies to E&P companies are concerned, the backlog of Rs1,500 billion is very much there. However, the Sui companies have now started paying 60-70 percent of the current dues.