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E&P companies plan injecting 150 MMCFD additional gas in system

December 23, 2020: The oil and gas Exploration & Production (E&P) companies have planned to inject around 150 Million Cubic Feet per Day (MMCFD) additional gas in the transmission network in the coming days from their different fields to meet the increased demand of the commodity during current winter.

“Additional local gas and increased import of Liquefied Natural Gas (LNG) will help tackle the high demand of the commodity in winter,” a senior official privy to petroleum sector developments told APP.

He said around 30 percent additional supply of LNG had been procured for the next month as compared to the same period of 2018 at the cheapest ever price of $6.34 per (Million British Thermal Unit (MMBTU)

The official said the Pakistan Tehreek-i-Insaf (PTI) government had arranged 12 LNG cargoes for January 2021. “One cargo that was scheduled for 30th December, and was intended to supply for January 2021, has been moved a few days ago into January. In addition, the volume [gas supply] has been increased in certain cargoes.”

He also shared a comparative statement about the purchase of LNG for a period from December-2017 to January-2021, which showed the government procured the commodity at the lowest rate for the current and next months.

He said the government procured 12 LNG cargoes each for the months of December-2020 and January-2021 at the average cost of $ 6.35 and $ 6.34 per MMBTU, respectively.

Making a comparison, the official said, in December-2017 and January-2018 nine cargoes were purchased each in two months at the rate of $ 7.50 and $ 8.49 per MMBTU gas, respectively.

While in December-2018, as many as eight LNG cargoes were acquired at the rate of $9.73 per MMBTU and 10 ships at the average cost of $ 8.82 per MMBTU in January-2019.

Similarly, the government procured 10 and 11 cargoes in December-2019 and January-2020 at the rate of $ 7.81 and $ 7.61 per MMBTU, respectively.

The official said the country existing indigenous gas production was around 3.7 Billion Cubic Feet per day against the demand of 6 BCFD, adding the efforts were being made to bridge the gap between demand and supply by injecting more local gas in the system and increasing the import of LNG.

Besides, he said, the government had opened up the oil and gas sector for private companies under its ease-of-doing-business plan aimed at achieving self-reliance in the field of energy.

APP

Posted on: 2020-12-23T12:39:00+05:00

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