Power sector not ready to lift LNG due to high cost, being low on merit orderISLAMABAD: The government has cut import of liquefied natural gas (LNG) to avoid excessive pressure in pipelines of public utilities following low demand and reluctance of the power sector to consume expensive gas. Pakistan has two LNG terminals with import handling capacity of 1.2 billion cubic feet per day (bcfd). Sources told The Express Tribune that the power sector was not ready to lift LNG because of it being expensive and lower on the economic merit order. Sources said the government had to cut LNG supplies at the end of February when the power sector refused to lift gas as per demand. In December last year, Sui Northern Gas Pipelines Limited (SNGPL) supplied 1,847mmcfd of gas, which included 925mmcfd of domestically produced gas and the remaining was LNG.

Source: The Express Tribune March 01, 2020 03:26 UTC