LAHORE: The Sui Northern Gas Pipelines Limited (SNGPL) has launched work to develop new infrastructure network (laying of pipelines) for extraction and distribution of the newly-discovered gas reserves in the districts of North Waziristan and Lakki Marwat, Bannu division, Khyber Pakhtunkhwa.

The new discovery would initially add 70MMCFD of gas to the SNGPL’s system, improving supplies, especially in winter.

“The blocks namely Bannu (North Waziristan) and Walli (Lakki Marwat) fields will initially provide 40 and 30 MMCFD of gas respectively, improving supplies in the service areas of the SNGPL (Punjab and KP). For this, the construction work to develop a new gas infrastructure network has been launched in the respective area,” an official source told Dawn on Tuesday.

New discoveries in Lakki Marwat, Bannu will add 70MMCFD gas to system

It merits mentioning that the KP is currently producing nearly 375 MMCFD gas. After having first right to use and meet its demand as per the Constitution of Pakistan, it provides the remaining gas to Punjab - the country’s largest gas user. Similarly Balochistan and Sindh, falling under service jurisdiction of the Sui Southern Gas Company (SSGC), being gas producing provinces, also meet their demand first and supply the remaining quantity to Punjab. Since the indigenous gas reserves in KP, Balochistan (Sui) and Sindh cannot fulfill demand of Punjab, especially in winter, the government is forced to import Liquefied Natural Gas (LNG) that is regasified at the two private sector LNG terminals at Karachi port and injected into the SNGPL’s system.

About new discovery in KP, Prime Minister Shehbaz Sharif also ordered the authorities concerned last week to ensure immediate supply of gas to the people living in the districts where new reserves were discovered recently. The premier sought recommendations regarding the development of the area in terms of social welfare, education and health. The relevant authorities were asked to submit a plan for providing relief to the residents living in the areas where the new reserves had been discovered.

“The maximum demand of KP during winter doesn’t exceed 375 MMCFD. However, in summer the demand reduces to 200 MMCFD or so, enabling it to inject the remaining 175 into Punjab. However, the province also inject some gas (20 MMCFD or so) into Punjab in peak winter after meeting its demand,” the official said.

He said owing to fast depletion and non-exploration of new reserves, the authorities are unable to meet the demand of [particularly] the domestic consumers. The situation is even forcing them every year [especially winter] to suspend supplies to non-export industry, captive power plants and other sectors.

“In April (summer) this year, the gas supply to non-export and CNG sector was also halted in a bid to improve supplies to the domestic consumers across the province. And it was probably the first time that the province faced such a situation in summer,” said the official.

Published in Dawn, August 17th, 2022