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ISLAMABAD: The Sui Northern Gas Pipeline Limited (SNGPL), on Monday, announced that it is disconnecting gas supply to LNG-based fertiliser plants, cement, CNG, and non-export industries from June 29 due to dry docking of Engro (EETPL) LNG Terminal-I. Gas load management plan will be applicable from June 29 to July 5, 2021.

The regasification from EETPL (Terminal-1) will be disrupted during the period from 29th June 2021 to 5th July 2021 due to unplanned dry dock activities, SNGPL said.

It decided to suspend gas/RLNG supply to the country's CNG, cement, and non-export industrial sectors.

The gas supply will also be disconnected to franchised area of the SNGPL (including Punjab and KPK), as decided in the consultative meetings.

The physical disconnection of all consumers is critical. Otherwise, the impact of the reduction will be minimised.

It announced immediate ramp down of the RLNG supply to M/s Agritech and M/s Fatima Fertiliser.

As agreed in the meeting, it will reach zero consumption at midnight on Monday, it said.

Earlier, the Cabinet Committee on Energy had considered the dry docking of Engro LNG Terminal.

However, it distanced itself from taking a decision and passed on the burden on to the SNGPL.

Earlier, in a meeting of the CCoE held on June 17, the Petroleum Division had informed that EngroElengy Terminal Private Limited (EEIPL), the Terminal Operator, requested dry docking of Floating Storage Re-Gasified Unit (FSRU) in the light of the LNG Services Agreement (LSA).

The terminal operator was entitled to withdrawal of the LNG services infrastructure of any component thereof from service for the purposes carrying out any of the planned works including schedule inspection, repair, maintenance, modification of LNG services infrastructure or any component thereof including the dry docking of FSRU.

Therefore, due to this activity, a reduction in the daily delivery and storage capacity shall occur.

Therefore, in order to reduce the impact of activity, on routine supply of LNG, the Petroleum Division proposed following RLNG/gas curtailment measures, in order of priority, with a view to supplying maximum RLNG to power plants as well as export industry, during the period of reduced availability owing to dry docking, stretching from 29-6-2021 to 05-7-2021.

SNGPL

It had proposed to suspend supply of up to 70MMCFD RLNG to two fertiliser plants.

It had further proposed to cut supply up to 40MMCFD RLNG to CNG sector in Punjab and supply of up to 70MMCFD indigenous gas to CNG sector in Khyber-Pakhtunkhwa.

It proposed to utilise the spared volumes by SNGPL for system balancing and/or diversion to power plants, subject to charging of RLNG tariff where agreement with power plant for supply of indigenous gas is not available. It had further suggested to suspend supply of up to 115MMCFD RLNG to non-export general industry in Punjab and the KP.

SSGCL

The Petroleum Division had proposed to curtail supply of RLNG/system gas to CNG sector and non-export general industry.

It also proposed to reduce RLNG Supply to KE and supply of system gas, as saved from CNG/non-export industry, to the KE for meeting its demand.

The CCoE had constituted a committee under the chairmanship of the Minister for Railways to conduct an inquiry and fix responsibility for delay, if any deciding issue of the FSRU dry docking, and submit a report to the CCoE consideration within 30 days.

Copyright Business Recorder, 2021

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