ISLAMABAD:- The government has decided to allocate 125 Million Metric Cubic Feet per Day(MMCFD) from two different gas fields to Sui Southern and Sui Northern Gas Companies for bridging the gap of demand and supply.
The decision has been taken in the meeting of the Economic Coordination Committee (ECC)of the Cabinet, held today in the chairmanship of Finance Minister Shaukat Tarin.
According to the decision, 110 MMCFD gas will be allocated from Mari deep (Goru-B) gas reservoir to Sui Northern Gas Company (SNGPL) for more than two years without compromising gas supply to fertilizer sector and 15 MMCFD gas from Jhal Magsi gas field to Sui Southern Gas Company.
Currently, the gas from Mari Deep reservoir is being supplied to the dedicated fertilizer units. The MPCL has offered 110 MMCFD for allocation upto 30th June 2024 without compromising the gas supplies to existing fertilizer consumers.
Both the MPCL and the SNGPL would be required to negotiate the terms of supply under the agreement and term sheet. Continuation of above gas supply beyond 30.06.2024 would be subject to review of gas availability for which a new proposal would be submitted to the ECC for consideration.
The Mari Petroleum Company, on an average, produces 695 MMCFD from shallow and 55 MMCFD from deep reservoirs).
The gas will be supplied through 20′ X 25 Km Pipeline being constructed by MPCL from its processing facilities to Muhammad Pur valve assembly (injection point) of SNGPL (Tehsil Ubaro, District Ghotki). It may be noted that no infrastructure exists to supply this gas to SSGCL in the proposed limited period of February, 2022 to June, 2024. The ECC also approved 15 MMCFD gas from Thal Magsi Gas Field to Sui Southern Gas Company on another summary of Petroleum Division, Through another summary, The Petroleum Division proposes upto 15 MMCFD Thal Magsi gas may be reallocated to SSGCL. Further, SSGCL would also carry out the project of gasification of Jhal Magsi town and would earmark the required gas out of the proposed allocation.
Finance Ministry, Ministry of Industries, Ministry of Planning Commission and other relevant departments did not objection on these summaries, mentioned in the request to the ECC.
It is pertinent to mention here that the gas demand in the country has increased manifold while the indigenous gas has witnessed natural depletion resulting into widening of gap between demand & supply , which is being bridged through supply of imported LNG. The indigenous gas availability for SNGPL in FY 15 was 1,442 MMCFD, which has depleted to 820 MMCFD as of today. Similarly, the indigenous gas availability for SSGCL in said financial year was 1,190 MMCFD which has now depleted to 970 MMCFD.
The indigenous gas availability for SNGPL in FY 15 was 1,442 MMCFD, which has depleted to 820 MMCFD as of today.