Govt to Avoid Importing Spot LNG Cargo in January 2025
The government has decided to avoid importing the spot LNG cargo in January 2025 to save foreign exchange. This decision was taken after a key meeting on December 16, 2024, where Deputy Prime Minister Ishaq Dar attended along with ministers from the Petroleum Division, Industries, and Production and high-ranking officials of Sui Northern.
The meeting further confirmed that Pakistan will be importing; 11 LNG cargoes under long-term agreements signed with Qatar and ENI during, January. The government intends to produce maximum gas locally from local fields, which has been below normal so far, in order to balance the gas supply during peak winter demand.
Gas Production and Demand Management
The national transmission network has seen a rise in line pack pressure, which exceeds the safe limits due to a 50% drop in local gas production. This is partly due to the reduced usage of RLNG by the Power Division and the import of 12 LNG cargoes in December 2024. The Power Division will increase the usage. of RLNG after December 26, 2024, when hydro power. generation is reduced due to canal closures for desilting.
Despite this, officials are still anticipating a gas shortage of 240-350 mmcfd, during the peak winter period between January 14 and 24, 2025. A load management plan has been devised to mitigate this deficit.
Effect on Main Industries
Under the plan, gas supply to some sectors will be curtailed:
Fatima Fertilizer will continue getting 45 mmcfd of RLNG.
Agritech, a nitrogenous fertilizer plant, will shut down during the entire month. of January and reduce gas consumption by 27 mmcfd
The CNG Sector supply of 50 mmcfd will be suspended during the month, of January.
Gas supply to the captured power plants will be cut down by half, to 75 mmcfd, only as required.
Domestic gas consumption will decrease by 50% because of a rise in gas tariffs.
The Power Division will, in addition to that rationalize gas demand from the power sector. This sector will see its demand go up from the current 320 mmcfd in January 2024 to 400 mmcfd.
All the above decisions will aim to effectively manage the country’s gas supply and save foreign exchange,.
