PakistanTimesNews after taking into account the fact that the system line pack of the nation generates 5.070 billion cubic feet per day (bcfd), the gas transmission infrastructure of the state is liable to a substantial amount of taxation.

This is mostly due to the fact that the industrial and electrical sectors are expanding their consumption of liquefied natural gas, which is commonly referred to as LNG. In an effort to reduce the amount of pressure that is being placed on the line pack, Sui gas providers continue to supply the domestic market with pricey RLNG even though summer has officially come to an end.

The Gas Industry

It is believed by senior officials in the Ministry of Energy that this will result in more price increases for gasoline that is manufactured and distributed across the country. Given that “the gas transmission system has the potential to burst at any time if the gas volume increases beyond this limit,” the officials have stated that this would put the nation in jeopardy of witnessing a catastrophe that would involve both gas and electricity alike. According to the pipeline, the maximum volume of gas that can be transported through it is 4,500 million cubic feet per day (mmcfd).

During the Eid break, the line pack continued to climb higher than the dead level, eventually reaching its maximum peak in the final week of March 2024 at 5.003 bcfd. This occurred after the line pack had consistently climbed higher than the dead level. In order to make the most of the opportunity that is offered by the decreasing line pack pressure, the residential sector is receiving a daily injection of RLNG that ranges from fifty to one hundred milliliters through the flow rate. In the beginning stages of the planning process, it was anticipated that the residential sector would receive between 150 and 250 mmcfd of the flow.

Sui Gas

It is without a doubt the case that the system acquires a high degree of sensitivity when the pressures in the line pack are greater than five bcfd. As summer draws near and gas is no longer required for heating in the two federating units stated above, the authorities declare that Sui Company finds it easier to transfer RLNG to the domestic sector. This is despite the fact that domestic gas demand has significantly fallen in Punjab and Sindh as summer approaches. In spite of the fact that Sui Company discovered that it was simpler to move RLNG to the domestic sector, this conclusion was reached.

Customers of Gas Sui Domestic are consequently required to pay a considerable premium for their service in order to compensate for the RLNG. This is done in order to compensate for the diversion. Despite the fact that the government only needed to earn Rs701 billion in revenue for the current fiscal year in order to meet its income target of Rs902 billion in 2023–2024, this is the situation that has arisen. For the purpose of accomplishing this objective, the government has already increased the price of gasoline by as much as 193 percent. Consequently, the consumers are the ones who are responsible for paying the estimated 232 billion rupees in expenses that are related with LNG diversion.

Sui Northern Gas

The ongoing diversion of RLNG by Sui Northern in order to alleviate strain on line packs is being faced with objections from officials in the petroleum division; yet, Sui Company continues to carry forward with this practice. RLNG is more affordable than gas, which is purchased by a considerable number of wealthy domestic users at a price of Rs 4,200 per litre. RLNG is priced at Rs 3,700 per litre, making it more affordable than gas.

In addition to that, the government has required five gas sources that are located in close proximity to one another to adhere to a gas flow limit of 150 mmcfd. Therefore, in order to ensure the safety of the gas transmission system, it is possible to make wells that are almost completely depleted sink and never rise back to the amount of natural gas flow that they had when they were first drilled. This is done in order to forestall the occurrence of any prospective issues that may arise. Before these wells can begin producing water, there will be tremendous expenditures incurred as a result of the employment of artificial lift techniques. These costs will be incurred before anything else. When local gas resources begin to yield less gas, it is exceedingly risky to continue producing local gas at the same rate as what is currently being done. This is because of the fact that maintaining the same rate of production is extremely risky.