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LNG terminals’ capability to be elevated to satisfy demand

by Pakistan Latest News Update

LAHORE: The growing demand for fuel within the nation has pressured the federal government to get the re-gasification capability of the 2 non-public liquefied pure fuel (LNG) terminals in Karachi elevated to 1,500 million cubic toes of fuel per day from 1,200mmcfd to make sure uninterrupted provide to home customers on precedence.

The scenario could worsen within the upcoming winter, particularly in Punjab, if agreements with the terminals will not be signed for the aim, Daybreak has learnt. “At present, the Sui Southern Gas Company (SSGC) is providing 150mmcfd to K-Electric. The company is utilising another 150mmcfd to meet the demands of other sectors, which is leading to low supply of Re-gasified Liquefied Natural Gas (RLNG) to Punjab from 1,200mmcfd to 900m­mcfd,” an official supply within the petroleum ministry instructed Daybreak on Saturday.

“If this situation persists and the re-gasification capacity of the existing two LNG terminals is not increased from 1,200mmcfd to 1,500mmcfd on time, the situation will be very disturbing, especially for domestic consumers, in the upcoming winter,” he warned.

The nation’s whole indigenous fuel manufacturing is roughly 3,000mmcfd at current that features over 2,600mmcfd from Sui (Baloc­histan) and elements of Sindh. Since Khyber Pakhtunkhwa’s native fuel manufacturing ranges from 300mmcfd to 400mmcfd, the nation is importing 1,200mmcfd of LNG to satisfy the calls for of Punjab, which usually stays in hassle owing to fuel scarcity.

Punjab prone to endure a colder winter amid fuel scarcity

When the demand for fuel will increase manifold throughout the nation in winters, Punjab fares the worst as its whole demand jumps to 2,300mmcfd or so. Equally, Sindh has additionally been experiencing shortages for the final couple of years on account of a decline in indigenous fuel exploration and consumption. Furthermore, winter additionally leads to an enormous improve in fuel consumption in Quetta and different areas of Balochistan from 50mmcfd to greater than 150mmcfd.

“Under the constitution, the province with indigenous gas reserves, exploration and production has the first right to use and meet its demand and then supply the rest to other provinces that have no such arrangements. So, the gas producing provinces of Balochistan, Sindh and KP first meet their demand and then provide the rest to Punjab,” the official defined, including: “That is why Punjab gets a dedicated supply of 1,200mmcfd of RLNG.”

The official mentioned if Punjab didn’t get the complete provide of 1,200mmcfd of RLNG and round 1,300mmcfd of indigenous fuel, it will not be capable to absolutely meet the demand of home customers within the upcoming winter.

In keeping with an official supply within the SSGC, though the federal government quarters are in contact with the LNG terminals in Karachi, it’s but to finalise preparations for enhancement of their re-gasification capability.

“The SSGC’s winter and summer demand is roughly 1,500mmcfd and 1,200mmcfd, respectively. But it receives up to 1,100mmcfd. In addition, it is also using 150mmcfd of RLNG and providing it to the K-Electric for power generation. So, there will be a shortfall of 300 to 400mmcfd of indigenous gas for the company in winter,” the official, requesting anonymity, instructed Daybreak.

One other difficulty, he mentioned, was the means to reinforce re-gasification capability of the terminals. “Recently, one of the terminals tried to increase its capacity through a large Floating Storage Re-gasification Unit but that violated certain clauses of the agreement with the government. So they have started replacing the bigger one with the smaller one as per the agreement to avert any complications,” he maintained.

Printed in Daybreak, August 22nd, 2021

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