ISLAMABAD: The Petroleum Division authorities have once again curtailed local gas offtake by 300mmcfd after pressure in the main gas transmission pipeline surged to 5.164 billion cubic feet (bcf) – a dangerous level that could potentially lead to pipeline ruptures, putting the country’s economic activities at a standstill and triggering a complete gas shutdown along with a partial power breakdown.
The linepack pressure has increased primarily due to lower consumption of re-gasified liquefied natural gas (RLNG) by the power sector. Currently, four RLNG-based power plants in Punjab are consuming only 324mmcfd of gas for electricity generation, against their allocated capacity of around 800mmcfd of imported gas.
Exploration and Production (E&P) companies have repeatedly warned theauthorities that curtailing local gas flows to protect the transmission system is a risky practice. Officials said E&P firms have argued that forcing near-depletion wells to reduce output can cause irreversible damage, preventing them from being restored to their original production levels. Reviving such wells requires capital-intensive artificial lift techniques. In the past, several wells suffered permanent damage due to production curtailments, resulting in massive financial losses for E&P companies.
The second major factor behind the surge in linepack pressure is a sharp decline in gas consumption by the export sector. Previously, the sector consumed 350-400 mmcfd of imported gas. However, following IMF-mandated measures, the government raised gas prices for captive power plants of the export sector to Rs3,500 per MMBtu and imposed an off-the-grid levy of 5-20%. As a result, gas consumption by the sector has plunged from 400mmcfd to just 126mmcfd.
Demand for imported gas has weakened further due to sluggish overall GDP growth. According to the latest data available, the power sector, as of Feb 5, was consuming only 324mmcfd of gas for power generation.
SNGPL stated that continued low RLNG consumption by the power sector against allocated volumes is causing high pressure across the transmission network, adding that mitigation measures are being taken accordingly. The company confirmed that current curtailment of domestic gas stands at around 300mmcfd, while RLNG consumption in the fertiliser sector is 60mmcfd.
Meanwhile, the Power Division maintains that RLNG-based power plants are operated strictly under the Economic Merit Order (EMO), warning that any deviation from the EMO would increase the basket price of electricity tariffs.
In January, Pakistan imported 12 LNG cargoes. However, by Feb 14 (Wednesday), the linepack crossed the critical threshold of 5 bcf, forcing authorities to once again shut down 300mmcfd of local gas offtake.
Owing to lower gas consumption, Qatar has agreed to divert 24 RLNG cargoes to the international market in 2026, while ENI will divert 11 cargoes, at the rate of one cargo per month from February to December 2026.
