Gas crisis in Pakistan to worsen in January 2021
Dec 21, 2020
Islamabad [Pakistan], December 21 : The gas crisis in Pakistan is set to worsen in January 2021, as Sui Northern Gas Pipelines Limited (SNGPL) will face a shortage of 500 mmcfd and will be left with no option but to close down Regasified Liquefied Natural Gas (RLNG) supply to the power sector.
According to The News International, in wake of delay in receiving the LNG cargo from Nigeria, the gas crisis has aggravated in Balochistan and Sindh as Sui Southern Gas Company (SSGC) is not able to retain the RLNG of 200 mmcfd, instead, the intake of RLNG to SSGC has reduced, which has further worsened the gas crisis in Karachi and Quetta.
SNGPL has already closed down RLNG supply to captive power plants meant for non-zero rated industry, and the supply of RLNG to CNG and fertiliser sectors have also been stopped. After placing a cut of RLNG to the power sector, the authorities will be able to divert 250 mmcfd to the domestic sector, but it will continue to face a gas deficit of 250 mmcfd.
In Pakistan, people are forced to purchase LPG to cater to their food needs, and the gas crisis has reached an extent that, except in posh areas, people have started facing gas with low pressure and in some areas, they are using wood as fuel.
The Pakistan government may also go for RLNG supply cuts to the export industry once a week from January 2021.
From January 4 to 20, the gas crisis will heighten to a large extent because of failure in getting hold of three cargoes of LNG as the bids were received in fixed price in dollar terms at USD 12.95 to USD 15.95 per mmbtu, and the government decided not to procure the pricey LNG, The News International reported.
Pakistan LNG Limited (PLL) wanted to have six spot cargoes for January, but when the bids were opened on December 10, 2020, international LNG suppliers for the first time did not turn with bids for the LNG vessels required for the time slot of January 8 to 11, 2021, January 12 to 14 and January 14 to 15.
Furthermore, no response from LNG suppliers for the said time slots had put the authorities in a state of shock.
The News International reported that the Pakistan government authorities are trying to shift some LNG cargoes, which are due in the last week of December, to the month of January to reduce the intensity of the gas crisis. The government is also reported to be desperately trying to garner the support of Qatar authorities to bail Pakistan out of the impending gas shortage.
