RLNG-based industrial, commercial connections: SNGPL begins working on pipeline augmentation project

Sui Northern Gas Pipelines Limited (SNGPL) has started working over a project to enhance pipeline capacity for transmission of imported RLNG to new general industry and commercial areas of Khyber Pakhtunkhwa. The pipeline augmentation project would be completed by September 2018 as the SNGPL board has approved the project.
Sources said that the federal government relaxed moratorium on the new RLNG-based industrial and commercial connections in April 2017 after which the SNGPL started receiving fresh applications for general industry and captive power prospective consumers. The management of the SNGPL has received 250 applications for new industrial and commercial connections and out of total, 212 applications are under process following the federal government RLNG policy.
The SNGPL will also carry out augmentation of pipelines to improve the existing low gas pressure in three industrial states, Hayatabad Peshawar, Gadoon and Hattar. Sources said that gas pressure remains low in those districts of province which are located at tail end of gas transmission network due to reduction of gas supply from the gas sources including OGDCL, MOL and PPL.
There is a shortfall of 150 MMCFD during November-December 2017 from the southern sources of KPK. The production was contracted to 260 MMCFD from the normal production of 400 MMCFD due to operational constraints of gas fields. The total consumption of KPK during peak winter reached 360-380 MMCFD in 2017 as against the production, which remained 350 MMCFD to 400 MMCFD. The present winter consumption will exceed 360 MMCFD.
The SNGPL plans about Rs 82 billion worth of capital expenditures (CAPEX) during FY 2017-18 including a massive Rs 65 billion on expansion and augmentation of main transmission lines and main distribution lines. In 2018-19, it plans capital expenditures of Rs 33 billion including Rs 21 billion for transmission and distribution lines. The investment on main transmission and distribution lines would hover around the same region but total CAPEX would remain at Rs 35 billion in 2019-20, gradually going up to Rs 41 billion in 2021-22.