In response to recent claims regarding the closure of indigenous gas fields in favor of imported RLNG, Sui Northern Gas Pipelines Limited (SNGPL) has issued a clarification.
According to the statement, the gas fields were temporarily closed in December when the power sector was not utilizing RLNG as per its demand. However, all gas-producing fields remain operational and are producing gas at optimal levels. Since the past 4-5 days, power generation has resumed RLNG consumption in line with demand.
SNGPL emphasized that the system can store up to two days’ worth of unutilized RLNG supplies in the pipelines, as there is currently no separate gas storage facility available in the country.
Addressing recent media reports, the company pointed out that the total gas curtailment over the past four months was less than 100 MMCFD, contradicting the figure of 329 MMCFD curtailment stated in a report by The News under the headline “Local Gas Cuts Cost U.S.$ 194 Million Loss to the Economy in 4 Months.” SNGPL clarified that curtailment only occurs during periods of low demand or lean months when the power sector fails to pick up RLNG as per its firm demand.
The company further stated that the gas fields operate at optimal capacity for most of the year, and circular debt issues have been addressed through adjustments in gas prices. As a result, Exploration and Production (E&P) companies are now receiving regular payments for their gas supplies, thanks to intervention by the Government of Pakistan (GOP).
