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Indigenous Gas Fields Remain Open Amid Misreporting of RLNG Curtailment

5 min read
Legal Expert
Indigenous Gas Fields Remain Open Amid Misreporting of RLNG Curtailment
The recent claims regarding the closure of Indigenous gas fields in favor of imported RLNG require clarification. The gas was closed in some parts of December when Power was not off, taking RLNG per its demand. All the gas-producing fields are OPEN and producing gas per optimum production. Power has started picking up RLNG per demand in the last 4-5 days. It is highlighted that SNGPL system can store up to a maximum of 2 days of unutilized RLNG supplies in the pipelines, as there is no separate gas storage facility available in the country. The total curtailment undertaken in the last 4 months is less than 100 MMCFD, while the figure of 329 MMCFD curtailment indicated in The News today under the heading “Local Gas cuts cost U.S.$ 194 million loss to the economy in 4 months” is not correct. The curtailment is only undertaken in the low demand / lean months of the year when the Power sector fails to pick up in accordance with the firm demand given by it. The gas fields operate optimally during most parts of the year, and the circular debt has also been addressed through adjustments in gas prices. E&P companies are now getting regular payments for their gas supplies owing to GOP intervention in the matter.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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