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SNGPL to lay new transmission line to resolve low gas pressure problem


The Frontier Post
September 18, 2020


PESHAWAR: Sui Northern Gas Pipeline Limited (SNGPL) will lay a new transmission line from Mardan-Charsadda to Peshawar to resolve the problem of low gas pressure on permanent basis.

The project will cost Rs 2.6 billion whereas work on it will start by November this year.

The chief minister was informed that work on a project worth Rs.1.2 billion was underway to resolve the issue of low gas pressure in Rashakai while work on provision of gas to Hattar Economic Zone was also being carried out on war footing.

The meeting was also told that development projects worth billions of in the field of natural gas were in pipeline for Khyber Pakhtunkhwa that would be completed during the tenure of incumbent government.

The Chief Minister while stressing upon the timely completion of ongoing projects directed the authorities concerned for expediting work and assured that provincial government will provide every possible support in this regard. The chief minister also underlined the need to take all possible measures for providing gas facilities to northern areas and other districts of province where facility is not available to public.

He said that by providing the facility of natural gas would stop deforestation in the province. He said the conservation of forests was their collective responsibility.
 

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Pakistan eyes six LNG spot cargoes for Dec to prevent gas shortage

October 6, 2020

ISLAMABAD: In order to meet the gas requirements of the country, Pakistan LNG Limited (PLL) has invited bids for the delivery of six Liquefied Natural Gas (LNG) cargoes to Port Qasim, Karachi, during the month of December.

As per details, PLL has advertised a tender for spot cargo purchases for six delivery windows in the month of December 2020. The quantity for each cargo will be 140,000 cubic meters.

The deadline for submission of bids is November 2, 2020. The bids will be opened the same day at 1230 hours PST as per PPRA rules.

“Pakistan LNG Limited reserves the right to reject all bids prior to the acceptance of a bid or proposal, as per rule 33 of Public Procurement Rules, 2004,” said the PLL advertisement.

According to PLL, the first LNG cargo will be delivered on 3-4 December, second on 8-9 December, third on 13-14 December, fourth on 18-19, fifth on 24-25 while sixth cargo will be delivered on 30-31 December on a Delivered Ex-Ship (DES) basis.

Sources in the gas sector said the demand for gas in the winter season usually goes up in the country due to higher consumption and low supply. However, they added, the gap between demand and supply can be bridged by importing LNG into the country.

“Although Pakistan had earlier inked a long-term agreement with Qatar for the supply of LNG, the incumbent government has been active on the spot market since last August mainly due to a surge in the demand of gas,” an insider informed. “PLL had previously issued tenders for delivery of two LNG cargoes in October and three cargoes in November, while the company has now issued a tender for supply of six LNG cargoes for December 2020.”

PLL is a subsidiary of Government Holding (Private) Limited (GHPL), which is owned by the federal government. The company has the mandate to procure LNG to meet the country’s gas requirements.
 

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Pakistan eyes six LNG spot cargoes for Dec to prevent gas shortage

October 6, 2020

ISLAMABAD: In order to meet the gas requirements of the country, Pakistan LNG Limited (PLL) has invited bids for the delivery of six Liquefied Natural Gas (LNG) cargoes to Port Qasim, Karachi, during the month of December.

As per details, PLL has advertised a tender for spot cargo purchases for six delivery windows in the month of December 2020. The quantity for each cargo will be 140,000 cubic meters.

The deadline for submission of bids is November 2, 2020. The bids will be opened the same day at 1230 hours PST as per PPRA rules.

“Pakistan LNG Limited reserves the right to reject all bids prior to the acceptance of a bid or proposal, as per rule 33 of Public Procurement Rules, 2004,” said the PLL advertisement.

According to PLL, the first LNG cargo will be delivered on 3-4 December, second on 8-9 December, third on 13-14 December, fourth on 18-19, fifth on 24-25 while sixth cargo will be delivered on 30-31 December on a Delivered Ex-Ship (DES) basis.

Sources in the gas sector said the demand for gas in the winter season usually goes up in the country due to higher consumption and low supply. However, they added, the gap between demand and supply can be bridged by importing LNG into the country.

“Although Pakistan had earlier inked a long-term agreement with Qatar for the supply of LNG, the incumbent government has been active on the spot market since last August mainly due to a surge in the demand of gas,” an insider informed. “PLL had previously issued tenders for delivery of two LNG cargoes in October and three cargoes in November, while the company has now issued a tender for supply of six LNG cargoes for December 2020.”

PLL is a subsidiary of Government Holding (Private) Limited (GHPL), which is owned by the federal government. The company has the mandate to procure LNG to meet the country’s gas requirements.
I seriously hope and pray, that we find and exploit more gas reserves, so everyone can have a comfortable winter.
 

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PGPL to build LNG terminal by Dec 2021

Pakistan GasPort Consortium Limited (PGPL) has emphasised that it will complete work on its second liquefied natural gas (LNG) terminal in December 2021.

At present, the company is operating one LNG terminal at Port Qasim, which has a capacity of handling 750 million cubic feet per day (mmcfd). PGPL is a subsidiary of the Associated Group.

In a meeting held this week to discuss the setting up of LNG terminals in Pakistan, the Associated Group chairman reaffirmed that the project would be completed by the end of next year. He added that the company would do so by seeking pipeline capacity while taking risk.
 

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https://www.thenews.com.pk/writer/khalid-mustafa

October 14, 2020

Two RLNG pipelines from south to north will be built: ISGS MD







ISLAMABAD: In a new development, the government has decided to build with GIDC (Gas Infrastructure Development Cess) funds two RLNG pipelines, each with capacity to transfer 1.6 bcfd (billion cubic feet gas per day), with diameter of 56 inches. The country is going to have more LNG terminals on private-to-private business model in the next three years time, with total capacity to re-gasify three billion cubic feet gas per day. The government will not extend any sovereign guarantee for offtake of gas from the upcoming LNG terminals.

So much so, the government has also made up its mind to acquire the land for the two gas pipelines, each with 1,100 kilometers length to be laid down from south to north. The second gas pipeline will be built, may be in venture with Russia or China or the country’s gas companies may build on their own, Ms Saira Najeeb, Managing Director of Inter-State Gas System (ISGS), divulged to The News in an interaction here on Tuesday.

Apart from it, she said, the government will also provide financing from GIDC Fund for the project to build gas storages in the upstream country and to this effect, the Asian Development (ADB) has been engaged for the feasibility report about the gas storages project.

She said that international and local companies that include Energas Terminals Pvt. Ltd, Engro Elengy Terminal Ltd, ExxonMobile Pakistan Pvt. Ltd, Mitsubishi Corporation, Pakistan Gas Port Consortium Limited, Tabeer Energy Private Limited have intimated the government in a meeting held on October 7, 2020 in the Petroleum Division that they will import and transfer 3 bcfd to the country once their LNG terminals come onstream. "This is the main reason for building the two RLNG pipelines."

The said LNG terminals will transport the gas to consumers through the said pipelines and the government will earn from the assets of pipelines through the transportation cost tariff. In addition, the government will also build gas storages in the country.

“We are currently internally discussing three scenarios on cost estimates, keeping in view the gas line of 1.2 bcfd with 42 inches diameter and pipeline of 1.6 bcfd with 48 inches or 56 inches diameters respectively.

Nothing has been finalized so far but the gas pipeline with 56 inches diameter having capacity of 1.6 bcfd is more economical for the country. The cost of the NSGPP will be determined once the Russian side is taken on board. Keeping in view the undertaking of the said six companies, which are set to install LNG terminals on private-to-private business model that they will re-gasify LNG of 3 bcfd and inject into the country’s system on long term basis, the two RLNG gas pipelines are required."

Coming to the North-South Gas Pipeline Project (NSGPP) that got delayed by five years, she said that the current set-up in the Petroleum Division is quite serious towards the project and the government is at present hectically engaged with the Russian government under GtoG arrangement and after the SC judgment on GIDC, it wants to keep its equity at 51 percent and the Russian side has been offered equity of 49 percent.

“We are in touch with the Russian government and asked it to notify their technical team and more importantly we have invited them to come to Pakistan and sign the commercial agreement apart from giving their input for amending the IGA (Inter-government Agreement) accordingly.”

Earlier, Russia was to build the project with its financing but after the SC judgment on GIDC, the scenario has changed. “Now we have to advance on the NSGPP with GIDC amount available with the Finance Division and to this effect, the government has decided to make NSGPP Assignment Account in which the Finance Division will deposit the amount of GIDC on yearly basis as per the demand of Petroleum Division, which will be submitted to the Finance Division with the pace on work on NSGPP project."
 

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Pakistan has decided to open up the liquefied natural gas (LNG) market for the private sector from next month in a bid to reduce financial risks for the government and enhance gas supply to minimise shortage in the winter season.



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RLNG pipelines from south to north will be built: ISGS MD


In a new development, the government has decided to build with GIDC (Gas Infrastructure Development Cess) funds two RLNG pipelines, each with capacity to transfer 1.6 bcfd (billion cubic feet gas per day), with diameter of 56 inches.

The country is going to have more LNG terminals on private-to-private business model in the next three years time, with total capacity to re-gasify three billion cubic feet gas per day. The government will not extend any sovereign guarantee for offtake of gas from the upcoming LNG terminals.

So much so, the government has also made up its mind to acquire the land for the two gas pipelines, each with 1,100 kilometers length to be laid down from south to north.

The second gas pipeline will be built, may be in venture with Russia or China or the country’s gas companies may build on their own, Ms Saira Najeeb, Managing Director of Inter-State Gas System (ISGS), divulged to The News in an interaction here on Tuesday
 

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Pakistan and Russia have signed a revised deal to lay the North-South Gas Pipeline, now renamed the Pakistan Stream Gas Pipeline due to Islamabad’s major shareholding.

The two sides have also agreed, in principle, to execute the project through a special purpose company, which would be incorporated in Pakistan.

They also held discussions aimed at finalising the broad contours and parameters of the project involving the construction of a high-pressure gas transmission pipeline from Port Qasim to Kasur for transportation of RLNG towards the northern side of the country in order to fulfil the gas shortage emanating from growing industrial demands and domestic consumers.

Earlier, Russia had to build the pipeline, own, operate, and transfer its ownership to Pakistan after 25 years. Russia had also to make 85pc of the required expenditure on the project whereas Pakistan had to spend 15pc of the capital.

In the revised model, Pakistan has money on account of gas infrastructure development cess (GIDC) and, therefore, it would contribute 74pc of the capital and Russia will make 26pc of the expenditure. However, Russia will provide all importable material for the pipeline.




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Work on 1,100km gas pipeline to start in July next year: SAPM

Special Assistant to the Prime Minister on Petroleum Nadeem Babar has said that construction work on the 1,100-kilometre Pakistan Stream Gas Pipeline Project will begin in July next year to transport liquefied natural gas (LNG) from Karachi to Lahore.


In an interview, Nadeem Babar said that Pakistan will have a majority share of 51pc to 74pc in the project, while Russia will own the remainder. He said that Pakistan’s gas distribution companies will be a part of the project, whereas a Russian consortium would lead the construction.



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Construction of Pakistan’s first private sector LNG terminal to start in Jan
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ISLAMABAD: After the government opened up the energy sector under its ‘ease of doing business’ strategy, a multinational company will start construction on the first merchant Liquefied Natural Gas (LNG) terminal in the country by end of January 2021.

“A vibrant structural framework is very much in place under which construction work on the first private sector LNG terminal will start by end of the January, whereas physical work on another merchant terminal will commence in second half of the year,” a senior official privy to the development told APP.

According to the officials, the Oil and Gas Regulatory Authority (OGRA) will issue the construction licence within a day or two, while all other agreements, permissions and arrangements have almost been finalised.

After setting up the terminals, the companies would import and sell the commodity on their own without any involvement of the government except in regulation matters.

It may be noted that the country’s existing natural gas reservoirs are depleting fast at a rate of 9.5 per cent per annum. LNG is the only available instant remedy to bridge the increased gap between demand and supply.

Currently, Pakistan’s indigenous gas production is around 3.7 Billion Cubic Feet per day (BCFD) against the demand of 6 BCFD.

According to a recent report by OGRA, the gap between demand and supply of gas could increase by 5,389 Million Cubic Feet per day (MMCFD) by 2029-30.


 

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OGDCL discovers Gas & Condensate reserves in KP


Based on open hole logs data, the well was tested at a rate of 1.6 Milion Standard Cubic Feet per Day (MMSCFD) of gas and 12 Barrels per day (BPD) of condensate through 32/64" choke at Well Head Flowing Pressure of 190 Pounds per square inch (PSI) from Samanasuk Formation.

The Joint Venture of Baratai Block comprising Oil and Gas Development Company Limited (OGDCL) as operator (97.5 percent) and Khyber Pakhtunkhwa Oil & Gas Company Limited (KPOGCL) (2.5pc) has discovered gas and condensate from its exploratory Well Siab-1, which is located in District Kohat, Khyber Pakhtunkhwa Province.

As per OGDCL, the structure of Siab-1 was drilled and tested using OGDCL's in house expertise. The well was drilled down to the depth of 5500 Meters.

Based on open hole logs data, the well was tested at a rate of 1.6 Milion Standard Cubic Feet per Day (MMSCFD) of gas and 12 Barrels per day (BPD) of condensate through 32/64" choke at Well Head Flowing Pressure of 190 Pounds per square inch (PSI) from Samanasuk Formation.
One more zone in "Lumshiwal/Hangu" formation has been tested at 4.18 Million Standard Cubic Feet per Day (MMSCFD) of Gas and 32 Barrels Per Day of condensate through choke size 32/64" at wellhead flowing pressure of 387 Pounds Per Square (Psi).


The discovery of Siab-1 is the result of the aggressive exploration strategy adopted by the company said OGDCL. It has opened a new avenue and would add to the hydrocarbon reserves base of OGDCL, KPOGCL and of the country and will contribute in reducing the gap between supply and demand of oil and gas in the country through the exploitation of indigenous resources.


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KE gets nod to construct gas pipeline

Company will receive gas supply via new pipeline at its RLNG-fired power plant at Bin Qasim


Salman Siddiqu
January 08, 2021





The Oil and Gas Regulatory Authority (Ogra) has allowed K-Electric to construct and operate a short distance pipeline to receive gas supplies for its forthcoming RLNG-fired 900-megawatt power plant at Bin Qasim from state-owned Pakistan LNG Limited (PLL) this year.

PLL would supply 150 million cubic feet of gas per day (mmcfd) through the dedicated pipeline to the Karachi-based power firm via Sui Southern Gas Company’s (SSGC) infrastructure.

The pipeline would be capable of transporting up to 250 mmcfd of gas. The supplies would be in addition to the ones that are being received by K-Electric from SSGC for a long time. The two companies are fighting a case in court to settle dues worth billions of rupees to be paid by K-Electric to SSGC.

“K-Electric is liable to lay the pipeline, which will handle up to 250 (mmscfd) of RLNG supply,” Ogra said in its decision while awarding the licence to K-Electric to construct and operate the pipeline.

A K-Electric spokesperson said that the company aimed to complete the construction of 2.4km-long pipeline in the vicinity of Bin Qasim by March-April 2021 so that one of the two 450MW RLNG-based power plants could be made operational by the forthcoming summer season.

K-Electric is expected to lay the pipeline at a cost of $4 million, while the two RLNG-based power plants of 450MW each are being set up at a cost of $651 million, according to Ogra. SSGC managing director, while speaking at a public hearing conducted by Ogra before the award of licence to K-Electric, said that the power company was a major defaulter of SSGC.

The total receivable amount as of September 30, 2020 stood at Rs115.91 billion (including Rs82.26 billion in late payment surcharge from July 2012 to July 2020. If K-Electric is allowed to lay and operate the pipeline, then it is likely that the power company would never pay off the outstanding balance to SSGC as it will no longer require SSGC’s supplies, said Ogra.

K-Electric representatives clarified at the hearing that the outstanding gas bill/ arrears mainly pertain to the late payment surcharge and the same is under litigation before the Sindh High Court.

“Heads of agreement with Pakistan LNG Limited for supply of 150 mmcfd of gas to BQPS-III (900MW RLNG-run) has already been signed,” said a K-Electric press statement.

“Subsequent to this, negotiations on the gas sale agreement (GSA) have reached advanced stage and potential hurdles need to be resolved as per past commitments by the Cabinet Committee on Energy (CCOE).”

“CCOE approved 150 mmcfd of RLNG supply to K-Electric while legacy issues (including the pending gas sale agreement) between SSGC and K-Electric were still prevailing…,” according to the Ogra licence order.
K-Electric said the 2.4km pipeline would be laid from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim, to K-Electric Bin Qasim Power Complex. The RLNG projects would help bridge the power company’s supply-demand gap in Karachi in the years to come.

“The addition of the 900MW RLNG power plant along with proposed decommissioning of older and lesser efficient units will ultimately increase the power utility’s generation capacity and lead to improved service delivery,” said K-Electric.

Gas turbines and steam generators have arrived. The second unit of 450MW can be brought online by the end of 2021, it said.


Published in The Express Tribune, January 8th, 2021.
 

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