Pakistan’s power sector has reduced its consumption of Regasified Liquefied Natural Gas (RLNG) by 28% in June 2025 compared to the committed volumes, creating operational and financial issues for Sui Northern Gas Pipelines Limited (SNGPL), BR reported.
SNGPL had agreed with the power sector to supply 550 million cubic feet per day (MMCFD) of RLNG for June 2025; however, actual consumption has averaged only 396 MMCFD, leading to excess gas accumulation in the system.
SNGPL said it has been raising the issue with both the Directorate General of Gas (Petroleum Division) and the Power Division for months, warning of potential disruptions in re-gasification operations.
Suppose the RLNG offtake does not increase to meet the agreed demand. In that case, SNGPL has stated that high system pressures could impact the re-gasification process at LNG terminals, leading to delays in cargo discharge and financial losses from demurrage charges and take-or-pay obligations.
In the worst case, the company may be forced to reduce supplies from local gas fields.
To prevent further operational challenges, SNGPL has urged the Directorate General (Gas) to engage the Power Division and ensure the immediate off-take of RLNG as per commitments, as well as recover unutilised volumes.
Meanwhile, the National Power Control Centre (NPCC), now operating as the Independent System and Market Operator (ISMO), has faced criticism for bypassing cheaper locally fueled power plants in favour of more expensive RLNG-fired units to meet peak demand, particularly in Central Punjab.
At the same time, stakeholders have suggested that ISMO publish real-time data on the generation mix and associated fuel costs to improve transparency and decision-making.
The issue is further compounded by forced outages at cost-effective plants such as Uch-I and EngroPowerGen Qadirpur during peak periods, which have increased reliance on more expensive power generation methods, driving up overall fuel costs. The Energy Coordination Committee (ECC) has revised the minimum take-or-pay obligation for RLNG to 50% from January 2025, which is expected to impact cost calculations in the coming months.
Additionally, Pakistan LNG Limited (PLL) has diverted six LNG cargoes, originally scheduled for delivery from Italian supplier ENI between July and December, to the international spot market.
Pakistan has also postponed the delivery of five LNG cargoes from Qatar, originally due in 2025, to 2026, citing lower domestic demand.
