Gas companies increase transmission network

F.P. Report

ISLAMABAD: The two state companies, SNGPL and SSGCL, have increased their transmission network by 1,044 kilometers and distribution network by 7,460 km during the last fiscal year.

“The Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) have increased their transmission network by 337 km and 697 km and distribution network by 760 km and 6,700 km respectively for providing gas to distant localities and added more consumers to the gas network,” Oil and Gas Regulatory Authority (OGRA) said in its annual report for the year 2016-17.

As of June 30, 2017, according to the report, the SSGCL and SNGPL’s cumulative transmission network stood at 3,973 km and 8,975 km and distribution network at 45,521 km and 110,217 km respectively.

The two utilities provided new gas connections to 486,418 consumers, while the cumulative consumer base of both the companies stood at 8,575,760, it added.

The report forecast that due to ever increasing demand for gas, the country would face an increasing deficit in gas supply. “The shortfall in gas is expected to reach 3,999 million cubic feet per day mmcfd) gas by FY 2019-20 and the gap will reach 6,611 mmcfd without imported gas by FY 2029-30.”

The government, being cognizant of the situation, has initiated various measures to bridge the gap between demand and supply, which included incentivizing of local gas  production, import of natural gas in the form of Liquefied Natural Gas (LNG) and cross country pipelines from Iran and Turkmenistan.

The government had developed two LNG handling terminals (each having re-gasification capacity of 650 mmcfd gas) at Karachi Port, which is a major milestone achieved to mitigate gas shortages in the  country.

During the period under review, total supply of natural gas in the country, including imported RLNG, has reached 4,131 mmcfd.