Govt says steps taken to mitigate RLNG shortfall impact

30 Jun, 2021

ISLAMABAD: As the country faces a severe energy crisis due to fuel shortage Federal Government said on Tuesday that it has taken all possible measures to mitigate the impact of RLNG shortfall in the system during the dry docking of Engro's Floating Storage Re-gasification Unit (FSRU).

The shortfall is estimated at 7000MW - 4000MW attributed to dry docking and 3000MW due to lower water flows in Tarbela.

The vessel, Sequoia, has already arrived at Port Qasim, which is said to be a capable and efficient vessel, with a re-gasification capacity of 780MMCFD.

According to a spokesperson for Energy Ministry, from June 29, 2021 the FSRU of first terminal is going for dry docking and Petroleum Division has taken the following mitigation measures: (i) during dry docking exercise which will continue till July 5, 2021 there will be a reduction in LNG supplies from first terminal. However, supply from second terminal will continue to be at its contracted capacity of 600mmcfd; (ii) during the first two days of complete closure of first terminal, the second terminal will provide maximum supplies. The total supply from both the LNG terminals will gradually ramp up to 824mmcfd from July 4, 2021; and (iii) normal supplies from first terminal will resume from 5 July, 2021 and total supply from both terminals will be 1,152mmcfd.

During the lower RLNG availability period, the gas companies have been authorized to manage their load as per government approved gas supply priority order whereby there will be uninterrupted supplies to domestic, commercial, power and export industry.

In order to meet the shortfall, gas companies are curtailing supplies to industry (non-export), fertilizer, CNG and cement in order of approved priority till July 5, 2021.

Some additional indigenous gas supplies are also being injected into system during this period.

The power generation demand during the dry docking will also be met through furnace oil (LSFO/HSFO) and High-Speed Diesel (HSD).

The spokesperson maintained that Petroleum Division has directed the refineries to maximize their production capacity in this period and they have increased their regular supplies for the power plants. The PSO/oil industry has been asked to maximize supplies to power sector.

In order to augment indigenous supplies Pakistan State Oil has been directed to float tenders for two cargoes of HSFO, which are expected to deliver on July 12 to July 21, respectively. PSO has also tendered two cargoes of LSFO, expected to deliver the product by July 7-15, 2021 and July 16-25, respectively. "Oil and gas exploration and production (E&P) companies have been asked to enhance production within possible limits," the spokesperson added.

Copyright Business Recorder, 2021

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