Govt panel to prepare operational plan for LNG consumption in power sector amid shifting electricity demand patterns 

The federal government has constituted a committee to review existing arrangements and prepare an operational plan for the consumption of Re-gasified Liquefied Natural Gas (RLNG) in the power sector as electricity demand patterns shift, Business Recorder reported, citing official sources.

The committee will assess the utilisation of RLNG-fired power plants and propose measures to manage surplus LNG volumes while coordinating operations between the gas and power sectors.

Officials say electricity demand from the national grid has declined in recent years, partly due to the growing use of rooftop solar systems and other factors. At the same time, Pakistan remains committed to receiving LNG cargoes under long-term supply agreements with QatarEnergy.

RLNG-based power generation ranks higher in the merit order compared with several other energy sources, making it relatively expensive to dispatch. As a result, operating RLNG plants often requires reducing output from lower-cost generation sources to absorb contracted LNG volumes.

The Independent System and Market Operator said this situation also affects the operation of the gas transmission system managed by Sui Northern Gas Pipelines Limited and the dispatch of electricity across the national grid.

To address these issues, a committee comprising representatives from the power and gas sectors has been formed. The group will be led by the chairman of the ISMO board and include officials from SNGPL, Sui Southern Gas Company, the Power Division and other technical experts.

The committee has been tasked with identifying the causes of RLNG underutilisation, reviewing contractual and operational constraints, and assessing the potential for higher RLNG consumption in the power sector.

Its mandate also includes preparing a strategy to absorb surplus LNG volumes, evaluating financial and tariff implications of increased RLNG use, and proposing a framework for coordinated planning between the gas and power sectors.

The development comes amid concerns within the Petroleum Division about revised RLNG demand projections from the power sector.

Officials said LNG demand for 2026 had already been finalised under the Annual Delivery Plan with QatarEnergy in line with the Integrated Generation Capacity Expansion Plan.

However, subsequent revisions in RLNG demand from the power sector could lead to a surplus of about 10 LNG cargoes, according to internal assessments.

The Petroleum Division has warned that changes in demand after finalisation of cargo schedules have created operational challenges, including increased pressure in the gas pipeline network and curtailment of indigenous gas supplies to maintain system stability.

Officials also noted that declining demand from the power sector has already led to surplus LNG volumes. Under a cabinet-approved plan, between 24 and 29 cargoes scheduled for 2026 are expected to be diverted under the Net Proceed Differential arrangement.

To manage excess supplies, Pakistan LNG Limited and Eni sold 11 surplus cargoes in 2025 on the international market, while the Petroleum Division and Pakistan State Oil negotiated the deferral of five LNG shipments from Qatar.