ISLAMABAD: After constitution of a committee on construction of brand-new Liquefied Gas (LNG) terminals, the gas utilities are stated to have actually revealed concerns over supply concerns in the existing pipe network based upon the federal government’s plan for offering gas to new residential customers as well as other industries.
Recently, a meeting at the Ministry of Maritime Matters constituted a six-member board, consisting of supervisors general of the petroleum department and also handling supervisors of the Sui Southern Gas Company Limited (SSGCL) and also Sui Northern Gas Pipelines Limited (SNGPL), to deal with challenges dealt with by the two upcoming terminals.
A top official in the oil division claimed both gas energies, particularly the SNGPL, had continuously been protesting over appropriation of 150 million cubic feet each day (mmcfd) to private power utility K-Electric on ‘take or pay’ basis while denying it of an existing, similar setup with 3 public industry LNG-based power plants in Punjab via a decision of the closet committee on power.
The authorities said the SNGPL had actually put on record that while it was obliged under the orders of federal government and resolutions of the Oil and Gas Regulatory Authority to offer regarding 3.7 million new gas links in 3 years, its gas materials as well as terminal and also transmission pipeline abilities were being reduced again by the government itself.
Records revealed that some attempts were made to construct a direct pipeline from among the existing LNG terminals to the KE’s upcoming nuclear power plant of 900MW at Bin Qasim so that Pakistan LNG Limited (PLL) can provide 150mmcfd gas to the power utility.
Nevertheless, SSGCL needed to step in to protect its legal rights and also serve as a barrier through its circulation system. The SSGCL had actually clarified to the top authorities in Islamabad that a direct link from the terminal would certainly have functional issues and heavy demurrage would certainly accumulate as the power utility would not be eating the complete designated quantity in all times.
The officials claimed the SSGCL and SNGPL had actually additionally initialled the gas transportation contract for 1,200 mmcfd of RLNG which meant that the entire existing transmission pipeline capability between the two utilities stood validated.
At the same time, the SNGPL and also PLL had actually settled a gas sale-purchase agreement for 600mmcfd capacity from second incurable as the Lahore-based gas firm had firm commitments of 1,100-1,200 mmcfd for as much as eight months a year with power, fertiliser, CNG sectors besides the expanding need in the household industry. This is happening at a time when the domestic gas production is declining by regarding 100mmcfd each year.
The petroleum division official said the gas utilities’ voice could not reach the head of state, the government cupboard or even the planning preacher, including that the previous hierarchy of the division was incapable to defend the civil liberties of gas utilities.