Islamabad, Dec 26: Recent claims about the closure of Indigenous gas fields in favor of imported RLNG have prompted the need for clarification. It was stated that the gas fields were closed during certain parts of December when power demand was not as high, and RLNG was utilized according to the demand. However, it is important to note that all gas-producing fields remain open and are producing gas at optimal levels.
In the last 4-5 days, the power sector has started utilizing RLNG as per its demand. A significant point to consider is that the SNGPL system can store only up to a maximum of two days’ worth of unutilized RLNG supplies in the pipelines, as there is no dedicated gas storage facility in the country. This limitation often leads to gas curtailment during periods of low demand.
According to recent reports, the claim of 329 MMCFD of gas curtailment over the past four months, as stated in The News under the heading “Local Gas cuts cost U.S.$ 194 million loss to the economy in 4 months,” is inaccurate. The actual curtailment in the last four months has been less than 100 MMCFD. This reduction in supply generally occurs during low demand or lean months when the power sector does not fully utilize its firm gas supply commitments.
It is also essential to highlight that the gas fields are operating optimally for the majority of the year. To further improve the situation, adjustments in gas prices have helped address the circular debt, ensuring that Exploration and Production (E&P) companies are receiving regular payments for their gas supplies. These interventions by the government have contributed to a more stable gas supply and improved financial viability for the sector.
