Islamabad, Nov 25: Exploration Companies Report Losses Exceeding Rs. 50 Billion. Between 2021 and 2024, Pakistani exploration and production (E&P) businesses lost more than Rs. 50 billion as a result of Sui companies cutting off gas outflows from the country’s transmission grid.
Businesses such as OGDC, Mari Petroleum, PPL, and MOL have often cautioned that reducing local gas supplies puts aged wells at risk and necessitates costly operations to restore production. According to a national daily, a number of wells have failed to recover, resulting in billion-dollar losses.
Sui Northern Gas Pipelines Limited (SNGPL) decreased gas input from nearby fields by 200 mmcfd on November 13, 2024; this has since increased to 285 mmcfd. The Sui field (PPL) has reduced by 90 mmcfd, HRL/Ghazij (Mari Petroleum) has decreased by 48 mmcfd, and MOL-operated fields have reduced by 50 mmcfd. As a result, several industries are susceptible to permanent harm.
System pressures have increased as a result of the power sector’s current reduction in gas consumption. Due to decreased energy demand and a preference for more affordable production sources like coal, nuclear, and hydropower, a sizable amount of the nation’s RLNG and local gas supply is still underused. The high cost of RLNG deters people from using it, especially in Punjab and Khyber Pakhtunkhwa, where seasonal demand is dropping.
The Power Division has made it clear that it prefers less expensive power generation solutions in order to counteract growing energy costs that could complicate gas usage across all sectors.
