Gas Network Caused a Red Flag Due to High Pressure

The country 's gas network caused a' red flag 'due to high pressure. The authorities have been forced to drastically reduce the supply of domestic gas fields due to the decline in electricity demand and the development of hydroelectric power. Pakistan's National Oil Corporation (PSO), the largest importer of liquefied natural gas and imports, and Sui Northern Gas Pipelines Limited (SNGPL) sought to involve energy ministers and the prime minister's office to address safety-related issues.

Financial costs for gas networks

Exchequer and international penalties. In two communications with the federal government, the PSO and SNGPL complained about lower than the promised gas volume in the electricity sector and warned about serious consequences. The tentative agreement reduces the supply of some domestic gas fields to prevent high - pressure accidents. Senior officials in the oil sector told us.

In a recent letter to the federal government on the weekend SNGPL complained that the electricity sector's average RLNG (regasified liquefied natural gas) consumption has remained at 714 mmcfd (one million cubic feet per day) since July 14. Demand for 828 mmcfd delivered from the power plant has been confirmed. Reduced consumption led to an increase in system packs of 4,925 mm cfd. It was the same on August 2nd.

Supply has been greatly reduced to protect the pipeline. The company added that the RLNG acquisition of the power sector fell further to 550 mmcfd on August 1, and with continued declining consumption, more packaging could be a disaster to the system and jeopardize the entire RLNG supply chain. The line pressure has increased due to the system pack and the red flag has risen in the network.

An official of the oil company said that the supply of Hassan, Kunji and Sui and the supply of SSGCL (Sui Southern Gas Company Limited) swap system were reduced to 400mmfcd in total to ensure safety. Supply in the Hassan and Koonj regions has been discontinued and supply in the Sui region has decreased from 75pc to 45mmcfd compared to the normal flow of 180mmcfd.

Including RLNG swap in SSGCL reduced total supply to SNGPL network by more than 30pc from 1340mmcfd to 945mmcfd. Therefore, SNGPL explains that RLNG-based power plants should be prioritized while assigning dispatch requirements for sustainability of the RLNG supply chain. The PSO, on the other hand, expressed dissatisfaction with financial and credit risks.

The PSA said

Instead of improving the gasification rate, the cargo is delayed due to cargo delays, and the situation is now out of control, putting tremendous expectations on all incoming cargo. Currently, Engro's Terminal 1 is running at approximately 540 mmcfd and may be more helpful in reducing or recovering previous lost capacity compared to the planned 600 mmcfd. The PSO said that as a result of the SNGPL's continued failure to commission offtakes.

The available discharge rate with the Engro terminal will be reduced, and the expected discharge rate will be kept at one-quarter of the normal rate, resulting in massive bombardment. Delaying cargo loading will have a cascading effect on future deliveries, and all cargo for a month in August 2019 is expected to result in heavy disturbances, now estimated at much higher than $ 150,000, "He added.

The PSO also warned that if immediate action is not taken, cargo arriving on August 15-16 may charge a "take or pay" charge, warning that the total cargo value will be approximately $ 30 million. Buyer (Pakistan) account without even receiving the product.

The PSO argued that the situation should develop as soon as the situation develops due to the low level of intervention in the power sector and that immediate improvements should be made in cooperation with the power division and the SNGPL.

In the meantime, SNGPL can avoid huge cost savings by switching to gas to another sector, reducing or suspending local supply, and taking every possible action on the battlefield.

Executive of the power department

Zargham Eshaq Khan, co-chief executive of the power department, refused to comment on the issue, but another official said the power sector supplied 850 mmcfd of gas in August and used mostly 90 pc during peak hours. He also said oil and gas companies should have the flexibility to absorb 10 to 15 percent of the gap in response to fluctuations in electricity demand. The problem is that the oil sector is incorrectly assuming a 1,130 mmcfd allocation for the power sector for a firm written request for 850 mm cfd.

An official said the power plants were hired in economic order. Hydropower is currently reaching 7,500-8,000 MW, which is the cheapest and can not reduce utilization because it is expensive. According to SNGPL, the weather forecast will continue to shrink RLNG consumption in the power sector because it has been rained on the four major consumption hubs of the SNGPL network. Also, according to historical trend, during Eid holidays, gas consumption is considerably reduced. 

This could add to system packs and pressure that could further adversely affect the RLNG and RLNG sources, which could interfere with the RLNG supply chain. Because SNGPL reported to the government that it could make full use of RLNG in the electricity sector during the summer due to the strong demand provided by the plant, there was room for LNG re-gasification or cargo re-sizing with firm intentions.

Because of the low consumption, system packs and pressure can ultimately result in huge financial losses in the form of a fan, and it is very important to prevent the ongoing consumption of RLNG in response to the demands of the power sector. The financial losses caused by low consumption of the sector depend on the calculation of the power department.

The Indus River Systems Authority

On Monday, the Indus River Systems Authority (Irsa) accused climate change for a rapid water shortage that lasted until June. But since July, the situation has improved and there are enough water in the province. Unfortunately, this year the mercury could not reach its highest level since there was little water in the rivers until June 15. But since then, the water level has started to improve, "Irdsa member Sindh Mazhar Ali Shah said in a briefing to the Senate's National Food Safety Standing Committee.

The meeting was held at the Pakistani Muslim League - Functional Senator Syed Muzaffar Hussain Shah in the parliamentary meeting room. The chairman said there was a sharp water shortage in Sindh in June and July, and cotton cultivation was severely affected in Sanghar, Mirpurkhas and Badin. Most farmers suffered from water shortages this year," he said. But Mazhar insisted that the problem was until June 15th.

Since then, as the water began to reach the end of the river, the situation improved. PM approves project for Sind's water problem. In the month of July, we had more water than we needed, and now the Taberla dam is almost full," he said. "There is a little water in the dam, but more rain will fill it," he said.

The committee was informed that the total production of cotton would be 95.5pc since the 100% target will not be achieved because the State Food Safety Department produces a lot of cotton but Punjab achieves 95pc and Sind will achieve 96pc. The chairman of the committee suggested that if the 100pc target could not be achieved, there would be a problem with all Pakistan Textile Mills Association and the government would take steps to increase cotton production.

Farmers can borrow up to 4 million rupees

Entrepreneurs can borrow tens of millions of rupees from banks, but farmers can borrow up to 4 million rupees, even if they own 200 acres of land. We have to pay for other services. The amount of the loan on land should be modified, "he suggested. Representative Zarai Taraqiati Bank Limited (ZTBL) said that during the last financial year, Rs 15 billion was allocated for loans and Rs 1.8 billion was allocated for the current fiscal year.

A ZTBL spokesman said that during the past fiscal year, loans were restored by 92 percent. Prime Minister Imran Khan on Monday approved the proposed project by Water Minister Faisal Vawda and President of the Water & Power Development Authority retired Muzamil Hussain to solve the Sindh water issue.

According to the PM Secretariat press release, Khan nodded, presiding over the country's water and water issues. Mohammad Ashraf, Water Secretary and other senior officials also attended the meeting. The Secretary of Water will soon officially announce the project.
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