NPCC Reduces RLNG Demand for Power Generation from July to September 2024

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ISLAMABAD: The National Power Control Centre (NPCC) has announced a reduction in the demand for Regasified Liquefied Natural Gas (RLNG) for power generation for the period from July to September 2024. This decision follows a pattern of reduced load in recent months, according to well-informed sources at Business Recorder.

Despite substantial load shedding due to a significant gap between power generation and demand, NPCC has revised RLNG allocations downward. This move is controversial, as it contradicts NEPRA’s regulations regarding revenue-based load shedding across the country.

In a letter to the Director General (Gas), NPCC’s General Manager (System Operation), Engineer Nasir Ahmed, stated the revised RLNG requirements. Initially planned at 670 MMCFD for July, 600 MMCFD for August, and 456 MMCFD for September, the new requirements are now 600 MMCFD for July and 400 MMCFD for September, with no change for August.

On June 6, 2024, Sui Northern Gas Pipeline Limited (SNGPL) raised concerns to the Director General (Gas), Petroleum Division, noting that RLNG offtake by the power sector had dropped to 475 MMCFD on June 5, against the communicated demand of 700 MMCFD. This discrepancy led to rapid system pack saturation, reaching an alarming level of 5155 MMCF, posing an emergency situation.

SNGPL warned that high pressures from packing due to reduced offtake could damage pipelines and pose risks to property and lives. They emphasized that the power sector’s current RLNG consumption levels are unsustainable and could compromise the integrity of the entire system, disrupting pipeline and compressor operations.

If the situation is not promptly addressed, SNGPL cautioned that high pressures at Sawan could negatively impact regasification from terminals, leading to financial risks and potential disruptions in cargo offloading, along with take-or-pay charges and demurrages.

Story by Mushtaq Ghumman

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