ISLAMABAD: The Indus River System Authority (IRSA) has announced canal closures from December 26, 2024, to January 30, 2025, to facilitate desilting operations in Punjab and Sindh’s irrigation networks. During this period, hydroelectric power generation will drop significantly, from the current 3,550 MW to less than 1,000 MW, due to reduced water releases from dams, according to the Ministry of Water Resources.
To address the resulting power deficit, the Power Division will increase reliance on RLNG-based power plants. This shift will help stabilize the national gas transmission network by utilizing excess RLNG, reducing dangerously high line pack pressures that have exceeded the 5 BCF threshold for the past two months. Currently, RLNG consumption in the power sector stands at 299 MMCFD, contributing to system vulnerability.
The shift to RLNG will come at a higher cost for consumers, as electricity generated from RLNG is priced at Rs24-26 per unit, significantly costlier than hydropower. This will likely result in higher electricity tariffs under the monthly fuel adjustment for the period.
Gas system operators have reduced local gas intake from 870 MMCFD to 407 MMCFD to manage line pack pressure. However, this has led to operational risks for local gas wells, with some nearing depletion unable to recover their original output levels, potentially causing irreversible damage. Exploration and production companies have warned that such practices could lead to substantial losses and require expensive remedial investments.
The reduced demand for RLNG, driven by high tariffs and economic slowdown, has also created a surplus of 18 LNG cargoes in 2025. While the government has deferred five cargoes to 2026, it is still uncertain how to manage the remaining 13. Meanwhile, 12 LNG cargoes—10 from Qatar and 2 from ENI—will be imported in December 2024 under long-term agreements.
Officials emphasize that the primary gas pipeline, which is being used as a storage facility rather than a transport network, reflects the reduced gas consumption by the power sector and underscores the need for better resource management.
