ISLAMABAD: The Sui Northern Gas Pipelines Limited (SNGPL) has decided to suspend gas supply to CNG, cement, and non-export industry of Punjab and Khyber Pakhtunkhwa (KP) from midnight June 29 until July 5, in order to manage gas loads.
According to sources, SNGPL has made the decision mainly due to ‘unplanned dry dock activities’ of existing floating storage and regasification unit at the Engro Elengy Terminal Private Limited (EETPL).
In a notice issued on Monday, the state-owned gas utility noted that “physical disconnection of all consumers is critical, otherwise the impact of curtailment will be marginalised”.
Sources in the Petroleum Division informed Profit that the division has granted permission for dry docking to a private LNG terminal, setting aside the concerns of some cabinet members.
According to sources, acute gas shortage will be witnessed for the first time in the history of the country during the summer season. However, an alternate floating storage and re-gasification unit has arrived in Karachi.
Reportedly, Special Assistant to Prime Minister (SAPM) on Petroleum Tabish Gauhar is also in Karachi from the last three days to solve the gas shortage and other related issues at the said terminal.
It may be mentioned here that an inquiry on the advice of Cabinet Committee on Energy (CCoE) has already been launched to determine the responsible behind the delay in dry dock activities at EETPL’s terminal. According to sources, this inquiry will be completed within a month’s time.
According to details, Minister for Maritime Affairs Ali Haider Ziadi has raised his voice against EETPL for failing to intimate about the matter on time since the terminal operator was bound to intimate specific dates of dry docking with the start of this year under the agreement.
Similarly, Federal Planning Minister Asad Umar was of the stance that the time of dry docking was not suitable because of improvement in economic activities at the start of the new financial year. Umar had also proposed to consult Law Division prior to taking a decision regarding granting permission for starting dry dock activities at EETPL’s terminal.
Finance Minister Shuakat Tarin had also recommended initiating an inquiry into the matter. Later, an inquiry under the leadership of Railways minister had been launched to look into the delay.
It is pertinent to mention here that in order to avoid the looming gas crisis in summer across the country, the Petroleum Division had proposed SNGPL to suspend 70 million cubic feet per day (MMCFD) of RLNG to two fertilizer plants, 40MMCFD of RLNG to CNG sector of the Punjab, 70MMCFD of local gas to CNG sector of KP province, 115MMCFD of RLNG to non-export industrial sector of Punjab and KP.
Moreover, the Division has also proposed Sui Southern Gas Company Limited (SSGCL) to stop RLNG supply to CNG, non-export industrial sectors under its domain, while the gas saved from the suspension would be supplied to K-Electric.
