Gas crisis spreads to all sectors in Punjab

LAHORE: Gas supply to all sectors, except domestic and commercial users, has been suspended by the Sui Northern Gas Pipelines Ltd (SNGPL) in Punjab due to the shortage of natural gas, and delayed addition of regasified liquefied natural gas (RLNG) in the system.

As the crisis of natural gas shortage deepens, the supply of RLNG was suspended to the fertiliser sector on Friday, coupled with significant curtailment to the power generation plants. Energy supply to the industrial and CNG sectors was already suspended since Thursday.

Citing the challenge of low tide, the port authorities again failed to successfully berth the LNG ship at Port Qasim, and authorities have informed that it might take another day before secure anchorage could be ensured of the ship at the LNG terminal.

However, official sources insisted that untimely, but direly needed dredging of main channel was being carried out by the port authorities, preventing entry of large ships into the port. “The main reason behind the delay in berthing of LNG ship is dredging, and not the low tide phenomenon, as sea level changes daily with high and low tides,” sources claimed. This activity unfortunately led to extending delay in berthing of the ship to the third day.

On the other hand, an insider said that low volumes of LNG import in December due to annual maintenance of LNG terminals and their underutilisation were one of the main reasons of persistent gas shortfall. He regretted that there was no solid strategy to use LNG terminals optimally.

The annual maintenance was due earlier last year, sources said, adding it was postponed due to high demand of gas in Ramazan. Later, sources claimed that prolonged annual maintenance of second terminal acted like adding fuel to the fire, further delaying import of the much needed LNG into the country.

As per an official announcement made by the SNGPL about the gas crisis, RLNG cargo of Pakistan State Oil (PSO) could not be berthed on Thursday due to what the gas utility called the low tide situation. This had resulted in reduction in RLNG supplies from Engro LNG Terminal earlier from 550mmcfd 225mmcfd.

The supply from Engro Terminal was further reduced to 120mmcfd Thursday night because of continued delay in the berthing of the needed cargo. Thus, total RLNG supply of around 1,000mmcfd was reduced to almost half at 540mmcfd on Friday evening, a spokesman of the SNGPL said.

This eventuality resulted in the curtailment of RLNG supply to industry, fertiliser, and CNG sectors. The RLNG supply to the power sector has also been reduced.

“The PSO cargo has not be berthed even on Friday due to the continuing low tide situation, which is beyond our control,” the SNGPL spokesman said. “We are continuously in touch with the PSO and the stakeholders will be informed accordingly.”

The company said that all out efforts were being made by the RLNG supplier to berth the cargo today (Saturday), and resume the supply of the much needed RLNG. The SNGPL hopes to achieve the task successfully.

However, the spokesman informed that stakeholders would be duly informed in case of any untoward situation or delay in timely resumption of the RLNG supply.

“The company regrets any inconvenience caused due to this situation. The gas utility will continue to make all out efforts to serve valued consumers to their entire satisfaction,” the spokesman added.