The Sui-Northern Gas Company Limited (SNGPL) has suspended gas supply to Compressed Natural Gas (CNG) stations following the advent of winter, contending that the company will barely serve its domestic consumers. According to sources in the Ministry of Petroleum and Natural Resources at present total gas shortfall on the network of two gas utilities is hovering around 2 Billion Cubic Feet per Day (BCFD), which will further increase as temperatures plummet and may cross 2.5 BCFD mark in December.
"We have linked the provision of natural gas to Compressed Natural Gas (CNG), fertiliser and industrial sector in upcoming winter with the intensity of weather. Our total gas demand is 6.2 BCFD and supply constant at 4 BCFD; out of the 4 BCFD 1.3 BCFD is low BTU and dedicated to fertiliser and power sectors, while the rest is being distributed through the networks of SNGPL and Sui-Southern Gas Company (SSGCL)," the official maintained.
The new gas load-management plan of the SNGPL says, "Due to reduction in supply of Re-gasified Liquefied Natural Gas (RLNG), supply to CNG sector shall be disconnected from 28th October 2015 for an unidentified period". "SNGPL would only supply to domestic consumers in morning hours, noon and evening hours and only for cooking purposes as it will face serious gas shortage," an official at Director General Gas (DG), Ministry of Petroleum said.
Sources said that as per gas load-management plan domestic sector is the top priority, which consumes up to 60 percent of the national gas production in the winter. According to the ministry officials, during past one year exploration and production companies working in upstream oil/gas sector of the country added 560 MMCFD gas to the system, while 490 MMCFD of gas was depleted, which means only 70 MMCFD of new gas was added to the system.
"Some of the country's top gas producing fields including Sui field situated in Balochistan, Qadirpur and Mari fields situated in Sindh are on a rapid deletion trend. Gas production from these fields will be zero in the coming few years, so to meet the increasing gas demand of all the consumers the government is not only exploring local resources but also trying to import 2.4 BCFD LNG within the next two years," the official maintained.
During this period local crude oil production has increased by almost 25,000 barrels per day, with local crude oil production reaching the record level of 100,000 barrels per day from 75,000 barrels per day a year ago. The government in November 2014 stopped supplying local gas to Punjab CNG stations which at present are being operated through imported Liquefied Natural Gas (LNG). In Khyber Pakhtunkhwa and Balochistan there is no gas load-shedding for any sector and in Sindh gas supply to industrial and domestic users in winter remains suspended for three days a week.
Gas use by domestic consumers has increased during the past few days as temperatures in Balochistan, Khyber Pakhtunkhwa and Punjab have started dropping and by the start of November temperatures in plain areas of Punjab will also decline raising demand by domestic gas consumers for heating purpose.
To deal with the gas shortage in the country, the government has started import of LNG from Qatar but as has not yet inked a deal with the Qatargas Company. At present Pakistan is consuming an average of 200 Million Cubic Feet per Day (MMCFD) of LNG which will reach 400 MMCFD once Gas Sales Purchase Agreement (GSPA) is signed. The government plans to construct one terminal at Port Qasim Karachi and another in Gwadar port which will have a total capacity of handling 2.2 BCFD of LNG which will be transported to upcountry through yet to be constructed 700 kilometer long gas pipeline. The pipeline would also be utilised to transport Iran-Pakistan (IP) gas project. The completion of IP is linked with the international sanctions against Iran, as these sanctions are removed against Iran, Pakistan will extend the gas pipeline from Gwadar by 70 kilometers to link it with Iranian side of the pipeline, the official added.
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