SNGPL suspends gas supply to industry

Will cut supply to LNG-based fertiliser plants, cement, CNG and non-export industries from June 29

ISLAMABAD:

Sui Northern Gas Pipelines (SNGPL) has announced that it will disconnect gas supply to liquefied natural gas (LNG) based fertiliser plants, cement, CNG and non-export industries from June 29 due to dry-docking of Engro LNG terminal.

“It is to inform you that regasification from EETPL (Terminal-1) will be disrupted during the period from June 29, 2021 to July 5, 2021 due to unplanned dry-dock activities,” SNGPL stated in a notification on Monday.

In order to manage the gas loads during the said period and pursuant to the minutes of the meeting of June 9, 2021, issued by DG (LGs), it also requested to curtail supply of gas/RLNG to the country’s CNG, cement and non-export industrial sectors.

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

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It is pertinent to mention that the physical disconnection of all consumers is critical. Otherwise, the impact of the reduction will be minimised. SNGPL also announced immediate ramp down of RLNG supply to Agritech and Fatima Fertilizer. “As agreed in the meeting, we will reach zero consumption at midnight on Monday,” it added.

CCOE distances

Earlier, the Cabinet Committee on Energy (CCOE) had considered dry-docking of Engro LNG terminal. However, it distanced itself from taking a decision and passed the burden on to Sui Southern Gas Company (SSGC).

Planning Minister Asad Umar had said that SSGC and Engro had commercial agreement and therefore they should take a decision on this.

In a meeting of the committee, held on June 17, the Petroleum Division had briefed the CCOE about the case and informed that Engro Elengy Terminal Private Limited (EEIPL), the terminal operator, has requested dry-docking of Floating Storage Regasification Unit (FSRU) in the light of LNG Services Agreement (LSA) with SSGC.

The terminal operator was entitled to withdrawal of LNG services infrastructure of any component thereof from service for the purpose of 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, 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 June 29 to July 5.

SNGPL

It had proposed to suspend supply up to 70mmcfd RLNG to two fertiliser plants. The gas utility firm had further proposed to cut supply of up to 40mmcfd RLNG to CNG sector in Punjab and up to 70mmcfd indigenous gas to CNG sector in K-P.

It proposed to utilise the spare volumes 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 suspending up to 115mmcfd RLNG to non-export general industry in Punjab and K-P.

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 K-Electric and supply of system gas, as saved from CNG/non-export industry, to K-Electric for meeting its demand.

Opposition to proposal

The Maritime Affairs minister and Power Division secretary opposed the proposal primarily because the terminal operator did not give sufficient notice for the activity.

Published in The Express Tribune, June 29^th, 2021.

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