ISLAMABAD: The country’s power system operator, the National Power Control Centre (NPCC) has reduced the Gasified Liquefied Natural Gas (RLNG) demand for power generation from July to September 2024 due to reduced load pattern in previous months, well informed sources told Business Recorder.
The decision to revise RLNG allocation downward for the power sector at a time when substantial load shedding has already started due to wide gap in generation and demand besides, revenue-based load shedding across the country, in violation of Nepra’s rules.
NPCC’s General Manager (System Operation), Engineer Nasir Ahmed, in a letter to Director General (Gas) conveyed that the tentative RLNG requirement of power sector for the month of July to September 2024 was planned as 670 MMCFD, 600 MMCFD and 456 MMCFD respectively.
Spot LNG: PD shares price forecast with gas utilities, NTDC and CPPA-G
However, keeping in view reduced load pattern observed in the system in previous months, the RLNG requirement of power sector from July to September 2024 is being revised as follows: (i) July-2024 - previous requirement 670 MMCFD, revised requirement 600 MMCFD;(ii) August -2024 - no change in demand; and (iii) September-2024 - previous 456 MMCFD -revised 400 MMCFD.
On June 6, 2024, Sui Northern Gas Pipeline Limited (SNGPL) in a SOS message to Director General (Gas) Petroleum Division apprised that offtake of RLNG by the power sector has dropped to 475 MMCFD on June 5, 20024 against the communicated demand of 700 MMCFD, which resulted in rapid saturation of system pack due to which it reached alarming level of 5155 MMCF creating an emergency situation.
The SNGPL argued that high pressures consequent upon packing due to less off-take of power may result in damages to pipelines and is prone to loss of properties/ lives as well.
According to SNGPL, power sector is consuming RLNG at a level which is unsustainable and if power sector does not increase off-take immediately it could jeopardize integrity of the entire system, severely disrupting pipeline and compressor operations.
The SNGPL has reiterated that in case the situation is not addressed immediately, regasification from terminals may be adversely effected due to high pressures at Sawan. Reduction in regasification not only has financial exposure but may also threaten to disrupt the whole chain leading to delays in cargo offloading, incurring take-or-pay charges/demurrages.
Copyright Business Recorder, 2024