Sui Northern willing to allocate pipeline capacity to Energas LNG terminal

ISLAMABAD: Sui Northern has dispelled the impression that it has not allocated the required pipeline capacity to Energas saying that it has already shared its willingness to allocate pipeline capacity to the Energas LNG terminal in line with the latest ECC decision of 27.10.2021 and also shared Final Access Agreement with Energas for execution in December 2021.

In the news item 'Energy Crisis: LNG terminal operators set to ink long contracts' appeared in The News edition on 9 May 2022, it has been mentioned that the construction of the Energas LNG terminal was not initiated because of a delay in allocation of pipeline capacity agreement by Sui gas companies.

Sui Northern says that SNGPL has shared the Final Access Agreement with Energas for execution in December 2021 and this was done after a comprehensive set of consultative sessions in high-level management meetings of both the companies. All pending issues related to the execution of the Access Agreement have been settled with Energas. The issue of Gross Calorific Value (GCV) of imported gas is pending which is beyond the control of SNGPL a Transmission and Distribution Company. This issue is being actively pursued and resolved by the Petroleum Division being an inter-sectoral issue.

Upcoming LNG terminals/shippers including Energas desirous to import LNG with higher GCV value, which will further increase the GCV of SNGPL’s system commingled gas stream. SNGPL remains constrained to supply RLNG at 1,000 BTU to the 3 GPP’s which require enhancing limits to 1150 BTU / Scf. The 4th upcoming GPP has already agreed to a GCV value of 1170 BTU / SCF. SNGPL has no issue with the higher import GCV value as long as the same is acceptable to downstream power sector consumers.

Energas is required to provide a firm Commercial Operation Date (COD) of its LNG terminal, which is awaited. SNGPL remains firmly committed to fully facilitating all upcoming LNG Terminal Operators/shippers being projects of national importance.