- SNGPL began reducing its gas outputs from November 13.
- The country’s main gas pipeline is now used for storage.
- The data shows that the pipe pack pressure is still not reduced.
ISLAMABAD: Amid fiscal challenges facing the country’s energy sector, it has been revealed that exploration and production (E&P) companies have suffered a loss of over Rs 50 billion in four years (2021-24 ) due to a reduction in their gas output by gas. public services, News reported Monday.
A senior Energy Ministry official told the publication that the reduction in gas flows was aimed at lowering pipeline pressure in the national gas transmission system.
Companies such as Oil and Gas Development Company Limited (OGDCL), Mari Petroleum, Pakistan Petroleum Limited (PPL) and MOL have again warned authorities that the practice of reducing local gas outflows to protect the gas transmission system was perilous.
The E&P companies, officials said, argued that sometimes depleting wells, if forced to reduce natural gas flows, would cause irreparable damage and the wells could not be recharged to their operating levels. original flow.
“They require capital-intensive investments via artificial elevation methods to resume production,” officials noted.
In the past, many wells faced enormous damage due to a reduction in their gas flows and they could not be recharged. This is how many exploration and production companies have braved gigantic losses, which, according to statistics, exceed 50 billion rupees over the period 2021-24.
Sui Northern began reducing gas outflows from local gas fields by 200 million cubic feet per day from November 13, 2024, which have now been further reduced by 285 million cubic feet per day, making the fields vulnerable gases.
Many wells may not be recovered with the same gas volume and pressure required.
Since yesterday, the latest data available with News regarding reduction in gas outflow, the system reduced gas inflow by 90 mmcfd from Pakistan Petroleum Limited (PPL) Sui gas field, 22 mmcfd from OGDCL’s Qadirpur gas field and 48 mmcfd from HRL gas field /Ghazij of Mari Petroleum Company Limited. , 15 mmcfd from OGDCL’s Tough field, 50 mmcfd from MOL’s MOL field, 45 mmcfd from Nashpa, 4 mmcfd from MOL’s Tolang field and 11 mmcfd from OGDCL’s Dhok Hussain field.
The country’s main gas pipeline now serves as gas storage instead of being used for transmission and distribution services simply because gas consumption has declined significantly in the country, especially in the power sector.
The Sui Northern Gas Pipelines Limited (SNGPL) says the power sector is continuously consuming less regasified liquefied natural gas (RLNG) compared to allocation. This situation has led to high pressures on the entire transport network. Mitigation measures are taken accordingly.
He further said that the Power division has reduced gas outflows from local gas fields by 285 mmcf per day so far, starting with 200 mmcf from November 13, 2024. However, data shows that the pressure of the pipeline pack is not reduced as the power sector has further reduced the absorption of imported gas for power generation to just 174 million cubic feet.
SNGPL claims that the power sector is continuously consuming less RLNG compared to the allocation. This situation has led to high pressures on the entire transport network. Mitigation measures are taken accordingly.
The supplier further said that the Power division has reduced gas outflows from local gas fields by 285 mmcf per day so far, starting with 200 mmcf from November 13, 2024. However, data shows that the pipeline pack pressure is not reduced as electricity The sector has further reduced the absorption of imported gas for electricity generation to just 174 million cubic feet.
The government has already managed to move 5 LNG cargoes to 2026, which were expected to reach Pakistan in 2025. Pakistan imports 10 liquefied natural gas (LNG) cargoes (9 from Qatar and one from ENI) every month, but consumption of the electricity sector has increased. This has never been consistent with the request that the Energy Division submits each month. In the gas pipeline, apart from imported gas, the country’s local gas is also included.
As a result of high gas tariffs, the consumption of imported and local gas has declined reasonably.
The Power Division claims that if it uses RLNG power plants to the maximum, the basket price of electricity would increase as the cost of power generation from RLNG is higher, which is Rs 26 per unit .
The electricity sector therefore prefers to primarily operate cheaper power plants that consume local gas and coal as fuel. The system also prefers to operate nuclear and hydroelectric plants because their rates are lower. Now, in November 2024, the demand for electricity has declined as the use of air conditioners is declining, especially in upper Punjab, KP and the northern part of the country.
The line pack on Sunday (November 24, 2024) was at 5.159bcf compared to 5.174bcf on Saturday. The power sector consumes 174 million cubic feet of gas for power generation, while the fertilizer sector consumes 92 million cubic feet.
The indigenous gas supply in this system remained at only 481 mmcf while the RLNG supply was at 699 mmcf, of which 64 mmcf was retained by Sui Southern. The export and non-export industry uses 225 mmcf in the Sui Southern system.