ISLAMABAD: Pakistan’s Exploration and Production (E&P) companies, including OGDCL, Mari Petroleum, PPL, and MOL, incurred losses exceeding Rs50 billion from 2021 to 2024 due to curtailed gas outflows by gas companies attempting to manage line pack pressure in the national transmission system.
A senior Energy Ministry official highlighted that reducing gas outflows, particularly from wells nearing depletion, poses significant risks. Such reductions can cause irreversible damage to these wells, necessitating costly artificial lift methods to resume production. Several wells have already suffered extensive damage and failed to recover their original flow levels.
Since November 13, 2024, Sui Northern Gas Pipelines Limited (SNGPL) has reduced gas outflows by 285 mmcfd, leaving many gas fields vulnerable. Key reductions include 90 mmcfd from PPL’s Sui field, 48 mmcfd from Mari Petroleum’s HRL/Ghazij field, 50 mmcfd from MOL’s fields, and 45 mmcfd from OGDCL’s Nashpa field, among others.
This issue arises as gas consumption, particularly by the power sector, has declined sharply. Despite monthly imports of 10 LNG cargoes, the power sector has reduced its intake of imported gas to just 174 mmcfd, prioritizing cheaper energy sources such as local gas, coal, nuclear, and hydropower to control electricity costs.
The government has also deferred five LNG cargoes from 2025 to 2026, citing reduced demand. SNGPL reports that line pack pressure remains high, with the system acting as a gas storage facility rather than for transportation and distribution. As of November 24, 2024, the line pack stood at 5.159 bcf.
Experts warn that continued reduction in gas outflows risks further damage to the country’s gas production infrastructure, compounding the challenges faced by the energy sector.
