Uzair bin Farid

Around 520,801 new consumers would be supplied with natural gas next year, as the gas companies are set to invest PKR38.674 billion in new transmission projects. However, the approval for gas supply to the new consumers rests with Oil and Gas Regulatory Authority (OGRA). According to the data available with WealthPK, the gas supply companies are also planning to invest PKR 47.7 billion in distribution projects and another PKR 9.416 billion in other projects.

Based on these estimates, the total investment will amount to PKR 95.79 billion during the current fiscal year (2023-2024). Currently, two LNG terminals – M/s Engro Elengy Terminal Limited (EETL) and M/s Pakistan GasPort Consortium Limited (PGPCL) – are operating under the OGRA licenses.

In order to make the market more competitive, the Authority granted licenses to two more energy companies in 2021. These companies are M/s Tabeer Energy Private Limited and M/s Energas Terminal Private Limited (ETPL). These two companies have been contracted to develop LNG terminals at Port Qasim, Karachi.

Currently, there are 10.7 million gas consumers in the country. The indigenous gas supply makes up 29.3% of the primary energy supply mix, which is supplied to all parts of the country through a network of 13,775km transmission, 157,395km mains, and 41,352km services gas pipelines. Sector-wise, the power sector was the highest consumer of natural gas during the July-March period of FY22-23. The total consumption stood at 999MMCFD (million cubic feet of gas per day), followed by the domestic sector consuming 907MMCFD.

Sector-wise natural gas consumption (July-March FY2023, MMCFD)

During the period in question, Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company Limited (SSGCL) provided 5,068 domestic connections, 1,948 commercial connections, and 86 industrial connections, with the total number of new consumers standing at 7,102. Similarly, during the same time period, both companies collectively laid a transmission network of 225km, 1,170km mains, and 63km service lines. Additionally, 92 villages and towns were connected to the network.

Liquefied Petroleum Gas (LPG) is used to meet the demand for natural gas in places where natural gas is not available. During the Jul-Jan 2023 period, the total supply of LPG stood at 843.878 tonnes of which 79.6% was met through imports from various international suppliers. The total number of LPG producers in the country is 11, whereas 273 LPG marketing companies operate with more than 7,000 authorized distributors.

The total amount of investment outlays in LPG for the July-March FY2023 period was around PKR2.75 billion. It is pertinent to mention that LPG is a cleaner alternative to biomass-based sources of energy and is regulated under the OGRA Ordinance 2002, and LPG Production and Distribution Rules, 2001.

Credit: Independent News Pakistan-WealthPk