Pakistan initiates plan for first underground gas storage amid LNG supply risks

Pakistan has initiated preparatory work to develop the country’s first underground gas storage facility, as repeated LNG cargo diversions and rising pressure in the gas transmission system expose supply and safety risks.

The News reported that Inter State Gas Systems (ISGS) has invited proposals from qualified consultancy firms through the PPRA’s EPAD portal to conduct a need assessment and pre-feasibility study for an Underground Gas Storage (UGS) project. The proposed facility is expected to provide initial storage capacity equivalent to 11–12 days of national gas consumption.

Pakistan currently has no dedicated gas storage infrastructure and depends on pipeline linepack to manage supply fluctuations. Energy sector officials have cautioned that reliance on linepack is inefficient and poses operational risks, particularly during periods of low demand.

According to officials, excess gas accumulation during off-peak periods pushes linepack pressure in the RLNG system beyond 5 billion cubic feet, a level considered a safety concern for the transmission network.

The planned UGS project is intended to provide flexibility in managing gas supplies, reduce reliance on pipeline pressure as a balancing mechanism, and mitigate risks linked to LNG supply disruptions. The study will assess technical options, storage requirements, and feasibility parameters to support future investment decisions.