ISLAMABAD: The Sui Northern Gas Pipeline Limited (SNGPL) has sought intervention from Director General (Gas) Petroleum Division to deal with surplus RLNG as PSO is unable to shift cargoes like PPL, sources in the SNGPL told Business Recorder.
The SNGPL has informed Director General (Gas) that through our earlier letters latest of June 11, 2024, an excess of around 211 MMCFD was initially projected in September-2024.
The SNGPL requested the PLL and the PSO for shifting of cargoes to other higher-demand months. The PLL successfully arranged for the deferment of one cargo, however, such an attempt from PSO has not been fruitful as yet, despite our repeated requests.
The SNGPL has highlighted the excess RLNG in September 2024 is primarily due to the reduced demand from power, which was originally accounted for at the rate of 674 MMCFD at the time of ADP finalisation and later reduced to 456 MMCFD by NPCC in January 2024. To make the situation worse, NPCC, in its letter of June 07, 2024, has further reduced Power demand to 400 MMCFD in Sept 2024.
Therefore, even with PLL’s arrangement to shift a cargo to December 2024, SNGPL is still faced with a projected surplus gas of around 200 MMCFD in its system. The required adjustment by PSO is critical to balance the demand-supply position during Sept 2024 and to avoid adverse impacts of potential high pressures on our network which can result in exposure of the country to take or pay charges/demurrages.
According to the SNGPL, it shall be forced to suspend supplies from indigenous sources as the last resort which will result in increased RLNG diversion to the domestic sector.
In light of the critical situation anticipated ahead, we request your urgent intervention to take up the matter with PSO for shifting of a cargo from September 2024 to January 2025 so as to safeguard the SNGPL system and to avert any national crisis.
The SNGPL has also apprised that SSGCL on February 21, 2024, communicated RLNG demand of 130 MMCFD for the month of July 2024. However, the SSGC has only retained on average 88 MMCFD during July as against 130 MMCFD.
According to the SNGPL, reduced retention of RLNG shall lead to packing of the system and may potentially lead to delays in the discharge of cargoes incurring top charges/demurrages, adding that less retention of RLNG can lead to an increase in RLNG diversion to domestic while SNGPL would bear the financial consequences.
The SNGPL has requested the Director General (Gas), Petroleum Division to intervene and advice SSGC to ensure RLNG retention of 130 MMCFD with immediate effect so that system stability is maintained and any operational and financial exposure may be avoided.
The SSGC is also of the view that in case the retention of RLNG is not increased as per demand, the increased diversion cost shall be on account of SSGC.
Copyright Business Recorder, 2024
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