ISLAMABAD: Following the footsteps of PTI government, Prime Minister Shahbaz Sharif led federal government has also failed to arrange required quantity of RLNG for winter months due to which domestic consumers will have to face “pressure profiling” again during this period, well informed sources told Business Recorder.
Power Sector will also get less supply of RLNG during winter months which may trigger Liquidated Damages (LDs).
Sharing the details, sources said, in a meeting held on August 1, 2022 M/s Pakistan LNG Limited (PLL) noted that there may be likelihood of non-supply of its term cargoes during September and November 2022, considering prevailing supply trend in global market conditions. Later on, PLL, in its letter of August 04, 2022 shared the available regasification rates of terminal-2 while considering non-supply of said term cargoes.
The matter was taken up with SNGPL seeking RLNG availability for power sector. In this connection M/s SNGPL has apprised that KE has indicated its revised requirement due to a fault in its plant and therefore any spare RLNG volumes from KE will be available to be supplied to SNGPL. Furthermore, Mari Petroleum has also indicated provision of gas supplies as per monthly nomination profile proposed by them in a letter of August 10, 2022.
According to the update provided by SNGPL, with respect to availability of RLNG for seven months (September 2022 to March 2023), eight cargoes (PSO =6+2) of 705 MMCFD will be available in September 2022, of which 380 MMCFD will be supplied to power sector against power demand of 875 MMCFD and Delivery Plan of 437MMCFD,
In October 2022, total nine RLNG cargoes of 849 MMCFD (PSO=6+2, PLL=1) will arrive of which 365 MMCFD will be supplied whereas in November nine cargoes of 806 MMCFD (PSO= 6+3) will arrive. However, supply to power sector will be 365 MMCFD in October and 210 MMCFD in November respectively.
The government has arranged 10 cargoes (PSO=6+3, PLL=1) for December, 2022 but power sector will get only 268 MMCFD.
For January, February and March 2023, nine cargoes of 875 MMCFD (PSO=6+2, PLL=1) for each month have been arranged of which 115 MMCFD, 237 MMCFD and 390 MMCFD of RLNG will be supplied to the power sector respectively in these three months against demand of 510 MMCFD, 350 MMCFD and 380 MMCFD.
SSGC and KE retention has been assumed to be 85 MMCFD in September, 165 MMCFD in October 145 MMCFD in November and 150 MMCFD in December 2022 whereas retention for first quarter of 2023(January, February and March) will be 150 MMCFD. Of this retention for KE will be 10 MMCFD in September, 90 MMCFD in October, 70 MMCFD in November and 75 MMCFD in December 2022 whereas in January, February and March 2023, it will be 75 MMCFD each month.
The sources said that SSGC retention has been assumed at 75 MMCFD whereas supply to CNG sector will be completely suspended till March 2023.
The sources maintained that supply to fertilizer sector will be suspended during Jan-Feb, 2023 while 50 per cent supply to Captive Power Plants (CPPs) in Punjab will continue to be curtailed till November 2022 and Feb-March 2023 and 75 per cent supply to be curtailed in January 2023. For December-2022, gas supply shall be provided at 25 per cent from 1-10 and 50 per cent shall be supplied thereafter.
The sources further stated that pressure profiling will be undertaken in domestic sector across the country to limit use of gas.
SNGPL would not be able to meet the Annual Delivery Plan (ADP) of Government Power Plants (GPPs) in December 2022 and January and February 2023.
Directorate General of Gas (Petroleum Division) maintains that SNGPL shall endeavour to provide maximum RLNG to power sector. However, owing to limited number of cargoes, RLNG could not be provided as per ADP of power plants which may trigger Liquidated Damages (LDs) from power plants/power purchaser.
Petroleum Division has requested Power Division to advise National Transmission and Despatch Company (NTDC) and CPPA-G not to impose any liquidated damages to SNGPL.
Copyright Business Recorder, 2022