The National Power Control Centre (NPCC), the country’s power system operator, has announced a reduction in the demand for Regasified Liquefied Natural Gas (RLNG) for power generation from July to September 2024, citing a reduced load pattern in recent months.
This decision to decrease RLNG allocation for the power sector comes at a critical time when substantial load shedding has already begun due to a significant gap between generation and demand, alongside revenue-based load shedding across the country, which is in violation of Nepra’s regulations.
In a letter to the Director General (Gas), NPCC’s General Manager (System Operation), Engineer Nasir Ahmed, conveyed that the tentative RLNG requirement for the power sector for July to September 2024 had initially been planned at 670 MMCFD, 600 MMCFD, and 456 MMCFD respectively. However, due to the reduced load pattern observed, the revised RLNG requirements are now set as follows: July 2024 – 600 MMCFD (previously 670 MMCFD), August 2024 – 600 MMCFD (no change), and September 2024 – 400 MMCFD (previously 456 MMCFD).
On June 6, 2024, Sui Northern Gas Pipeline Limited (SNGPL) issued an SOS message to the Director General (Gas), Petroleum Division, highlighting that the offtake of RLNG by the power sector had dropped to 475 MMCFD on June 5, 2024, against the communicated demand of 700 MMCFD. This discrepancy led to rapid saturation of the system pack, reaching a critical level of 5155 MMCF, creating an emergency situation.
SNGPL warned that high pressures resulting from less RLNG offtake by the power sector could damage pipelines and pose risks to properties and lives. The power sector’s current RLNG consumption levels are unsustainable, and if immediate action is not taken to increase offtake, it could jeopardize the integrity of the entire system, severely disrupting pipeline and compressor operations.
SNGPL further emphasized that if the situation is not promptly addressed, regasification from terminals could be adversely affected due to high pressures at Sawan. A reduction in regasification not only carries financial risks but could also disrupt the entire supply chain, leading to delays in cargo offloading and incurring take-or-pay charges and demurrages.
