Local gas supply from indigenous sources is running out quickly: NA said

ISLAMABAD, September 22 (APP): Energy Minister Hammad Azhar on Wednesday informed the National Assembly that gas supplies from indigenous sources are running out quickly and that over the past fiscal year an average of approximately 900 MMCFD was available for Sui Northern Gas Pipelines Limited. (SNGPL) whereas currently it was around 800 MMCFD.

Responding to various questions during Question Time, he said that the gap between domestic gas supply and consumption by various sectors has therefore been closed by injecting RLNG into the SNGPL grid.

Due to pipeline capacity constraints, a maximum of 1200 MMCFD of RLNG could be transported. SNGPL placed LNG import orders for maximum available capacity during eight peak months, while the remaining four months were relatively low demand months, he said.

He said currently 70 percent of LNG was purchased through long-term contracts and 30 percent through the purchase of spot cargoes.

However, he said, starting next month, 90% of LNG would be purchased under long-term contracts, saving billions of rupees.

The minister said that currently there is no LNG storage facility in the country and an underground storage facility will be set up.

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