Power sector to get LNG in winters

December 6, 2021

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The federal government has decided to provide power plants with more LNG this winter compared to actual consumption the previous year, while natural gas power plants may use furnace oil in case gas is not available.

This is included in the Winter Gas Load Management Plan 2021-22, which the Petroleum Division will share with the Cabinet Committee on Energy (CCoE). The implementation of the plan has already begun on December 1, 2021.

Sui Gas Companies are proposing an annual winter gas load management plan (December 2021-January 2022) and are implementing it once approved by the federal government.

The challenge for managing gas supplies to domestic consumers in winter is the increased demand compared to supply and infrastructure constraints.

Gas demand will increase in winter due to heating and hot water needs – SSGCL will increase from 350 million cubic feet per day to 500 million cubic feet per day, and SNGPL will increase from 550 million cubic feet per day to 1200 million cubic feet per day.

The federal government has adopted a policy to divert the RLNG to the SNGPL network during the winter months. However Due to the significant difference between domestic gas and LNG prices, the tariff difference for SNGPL stood around Rs 104 billion.

Government’s projections shows that demand in period December 2021-January 2022 is set to increase from 4,243 MMCFD in November to 4,474 MMCFD per month in December – January period (7% growth). The Gas supply deficit is set at 717 MMCFD in December, 2021 and 961 MMCFD in January, 2022 for domestic sector.