ISLAMABAD: Despite a significant reduction in gas output by Exploration and Production (E&P) companies, the country’s natural gas transmission system continues to be on the verge of collapse.
Official sources at the Ministry of Energy said The news on Tuesday the line package remains at 5.078 billion cubic feet (bcf). “If it exceeds 5 bcf, the country’s natural gas system may explode at any moment, putting the entire country in a deep gas availability crisis,” officials said. The volume of gas shall not exceed 4,670 bcf in the gas transmission pipeline system.
Oil & Gas Development Company (OGDCL), Mari, MOL and Pakistan Petroleum Limited (PPL) have been forced to cut gas outputs to reduce pressure on the pipeline as their gas fields, which are approaching the exhaustion, they could be exposed to vulnerability. due to the reduction of gas emissions. Most of the time such gas fields could not achieve gas pressure and some gas fields could not be recharged despite heavy investments in the past.
Public sector E&P companies have taken their frustrations to government officials over their directive to repeatedly cut gas output.
This is the second time this month that line pack pressure has put pressure on the country’s natural gas transmission system. Line pack pressure remained on May 4-5. It continues to run for four days starting May 25. But the authorities have only one recipe to handle the situation, and that is to reduce gas flows from local gas fields.
As of May 28, natural gas in the pipeline still stands at 5,078 bcf, mainly due to a massive reduction in Regasified Liquefied Natural Gas (RLNG) consumption by the power sector to 525 mmcfd against a demand of 750 mmcfd as fuel for generation electric power.
“If the power sector consumes RLNG as per its demand, the ongoing bulk load of electricity can be significantly reduced,” the Power Department sources said.
The Power Division, however, is shy of operating four RLNG power plants in Punjab at full scale, sources said. Under this scenario, end consumers will receive inflated bills in the form of monthly fuel adjustments.
“Generating electricity, based on RLNG as fuel, is very expensive. The revolving debt, which stands at Rs 2.6 trillion by March 2024, will increase further,” sources said. Powers sector experts say more electricity generation will lead to more growth in cyclical debt. It is all due to low recovery of electricity bills and increasing theft, mainly due to high electricity prices, sources said.
“Furthermore, the industrial sector again reduced RLNG consumption due to high gas tariffs. Hundreds of industrial units in Punjab have been shut down.” The Compressed Natural Gas (CNG) sector in Punjab has almost disappeared due to the government policy of not providing RLNG to the CNG sector even at prices higher than RLNG tariffs.
The country cannot reduce RLNG imports because state guarantees are tied up in long-term deals with Qatar and ENI, sources said. Reducing local gas outflows in the system is the only option left to the Petroleum Directorate, sources added.
Data in the line pack showed natural gas consumption in the fertilizer sector at 70 mmcfd on Tuesday compared to 63 mmcfd on Monday.
Originally published on The news
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