KARACHI: The Sui Southern Gas Company (SSGC) on Friday issued an international tender for the supply of six liquefied natural gas cargoes, 1,500 tons each, on cost and freight (C&F) basis from March to August 2020 for its plans to supply synthetic natural gas (SNG) as an alternate to piped gas.
The SSGC tender offer noted “however, the bidders can offer higher quantities in multiple of parcels.” It may be mentioned here that SSGC is setting up LPG-Air Mix plants in remote areas of Sindh and Balochistan where conventional pipelines cannot be laid. LPG is mixed with air to produce synthetic gas for onward supply to the consumers through distribution networks like natural gas.
Investment of Rs14 billion is being made in LPG-Air Mix Plants, all of which are expected to be capitalised by 2020.
The government had planned to install LPG air mix projects to provide gas to the consumers in some parts of the hilly areas. The projects include LPG storage facility, installation and commissioning of plants, civil works and distribution network. Since air mix gas is of low pressure, it doesn’t require high cost to set up pipelines in the hilly areas of Balochistan.
The Economic Coordination Committee (ECC) had directed SSGC to expand setting up of air mix plants in every district of the country.
According to an SSGC official, SNG or LPG-Air Mix technology is not a new phenomenon for the gas utility since it is an alternative mechanism for providing gas to those far flung areas where conventional transmission through pipelines is not possible.
“Back in 2005, SSGC transmitted gas to Gwadar in Balochistan through this technology and since then the company has established multiple LPG-Air Mix Plants in Balochistan and Sindh.”
It may be mentioned here that in 2017, SSGC’s board of directors gave its approval for installing 30 more LPG-Air Mix plants in the company’s franchise areas.
An official said the supply of SNG would help tackle the issue of deforestation and emerge as a safe and convenient mode of energy as compared to contemporary sources since no refilling was required through this technology. “Besides, its price is regulated and not subject to market fluctuation.”
With an addition of 700,000 consumers last year, Pakistan’s gas shortfall is estimated to jump by 157 percent to 3.7 billion cubic feet per day (bcfd) in fiscal year 2019-20. The estimates have been made by the Oil and Gas Regulatory Authority (OGRA) that put the gas shortfall increasing almost continuously every year to 6.6bcfd by FY2028.
Moreover, SSGC’s fully owned subsidiary SSGC LPG (Pvt) Limited is engaged in LPG marketing and distribution across the country. The company owns and operates a dedicated open access LPG terminal with storage facilities at Port Qasim to handle LPG imports.
