Another LNG cargo diverted to protect gas transmission system

ISLAMABAD: The government has diverted another one-term LNG cargo to the international market, which was scheduled to arrive in Pakistan next month, primarily to protect the national gas transmission system that is facing line pack pressure hovering between 4.9 and 5bcf.

“Following the request of Pakistan, Qatar has already deferred 5 LNG cargoes to 2026, which were to arrive in 2025 under the flexible clause of the 15 year contract. However, Qatar did not accommodate the country’s request for deferring another 5 more LNG cargoes to 2026,” a senior official of the Petroleum Division told The News.

Earlier, the government authorities managed to divert two LNG cargoes from ENI to global market, which were to reach Pakistan -- one in February and another in March. Even this month, line pack pressure has crossed 5bcf multiple times — a danger mark at which the gas transmission system becomes vulnerable and could burst at any time, bringing the entire country to a halt.

Pakistan LNG Limited (PLL) --- a 100pc state-owned company is in agreement with ENI—an Italian trading company for 15 years to import one LNG cargo at 12.14 percent of the Brent every month.

The Petroleum Division also confirmed to this scribe that this is the third LNG cargo from ENI which has been diverted to the international market as the gas consumption in Pakistan has alarmingly dwindled by 150-200mmcfd per month.

“We are also in talks with ENI to divert the remaining 8 LNG cargoes which are to reach Pakistan every month from May to December, 2025.”

When contacted, PLL management expressed inability to confirm because of an NDA (non-disclosure agreement) signed with ENI, but it did not deny the development and preferred to remain silent.

Earlier, SNGPL in its letter written on January 21, 2025 to the federal government had asked to divert 11-term LNG cargoes to be imported in 11 months of 2025 from ENI — to the international market as the Power Division has 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 would not run the RLNG-based power plants at the optimum level for power generation because they rank at the last of the Economic Merit Order (ECO) list. The electricity generation cost of RLNG power plants is at the higher side which stands at Rs26-27 per unit.

Sui Northern wrote a letter on January 21, 2025 to the Managing Director of Pakistan LNG Limited (PLL) and mentioned that the matter of surplus RLNG was taken up with the Power Division and was requested to review demand of RLNG for the upwards revision during June, July and August 2025.

The letter says NPCC (National Power Control Cell) responded on January 21, 2025 saying that the demand of the power sector for June, July and August shall remain unchanged in view of the declining electricity demand. So Sui Northern requested PLL MD to take up the matter with ENI for the diversion of LNG cargoes for the remaining 11 months of 2025.