ISLAMABAD: Pakistan’s power sector consumed 28% less RLNG than its committed volumes with Sui Northern Gas Pipelines Limited (SNGPL) in June 2025, triggering serious operational and financial concerns for the gas utility, sources revealed.
SNGPL had planned for a committed supply of 550 MMCFD (million cubic feet per day) to the power sector, but actual consumption averaged just 396 MMCFD, leading to gas buildup in the system. The utility has repeatedly flagged the issue to the Directorate General of Gas (Petroleum Division) and the Power Division, warning of potential disruptions in re-gasification operations at LNG terminals and the risk of demurrage charges and take-or-pay penalties.
The company cautioned that it may be forced to curtail supplies from local gas fields if offtake doesn’t increase. SNGPL urged immediate action to resume consumption in line with commitments and adjust unutilized volumes.
Meanwhile, the Independent System and Market Operator (ISMO), formerly NPCC, maintains that deviations in RLNG consumption are due to plant outages and partial load dispatching based on Power Purchase Agreements (PPAs). However, stakeholders and NEPRA have raised concerns about the bypassing of cheaper, locally fueled plants, urging ISMO to publish real-time generation mix data to improve transparency.
In addition, Partial Load Adjustment Charges (PLAC) for April 2025 hit Rs2.92 billion, with a cumulative FY25 cost of Rs32.8 billion, raising red flags. Member (Technical) Rafique Ahmad Shaikh urged better system planning to cut PLAC and boost use of indigenous, economical power sources.
In parallel, Pakistan LNG Limited (PLL) has diverted six LNG cargoes from Italian firm ENI and deferred five Qatari cargoes to 2026 due to declining domestic demand, signaling further adjustments in the country’s LNG strategy.
Story by Mushtaq Ghumman
