ISLAMABAD: In response to recent reports regarding gas field closures in favor of imported RLNG and alleged economic losses, Sui Northern Gas Pipelines Limited (SNGPL) has issued a clarification refuting key points in the published story titled “Local Gas Cuts Cause $194m Loss to Economy in 4 Months.”
SNGPL stated that the indigenous gas fields were temporarily closed only in parts of December due to low RLNG demand from the power sector. Currently, all gas-producing fields are operational and producing at optimal capacity, with the power sector resuming RLNG consumption over the past five days.
The company emphasized that its pipeline system can store a maximum of two days’ unutilized RLNG, given the absence of separate gas storage facilities in Pakistan. It further clarified that the total gas curtailment over the last four months amounted to less than 100 MMCFD, disputing the reported figure of 329 MMCFD.
SNGPL attributed curtailment to low demand during lean months when the power sector fails to lift gas as per its firm commitments. The circular debt issue has been partially addressed through gas price adjustments, allowing Exploration and Production (E&P) companies to receive regular payments for gas supplies under the government’s intervention.
Contrary to SNGPL’s claims, data shared by E&P companies with the Petroleum Division indicate reductions totaling 329 MMCFD across multiple fields between August and November. This reportedly caused monthly economic losses of $48 million.
Despite improved payment practices, a backlog of Rs1,500 billion remains outstanding to E&P companies, with SNGPL now paying 60-70% of current dues.
The News stands by its report, reiterating the reduction figures and their impact on the economy.
