Govt Okays Allocation of Additional Gas to SNGPL to Bridge Demand-Supply Gap

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The government has principally decided to allocate up to 110 million cubic feet per day (MMCFD) gas from Mari deep (Goru-B) gas reservoir to Sui Northern Gas Pipelines Limited (SNGPL) without compromising gas supply to the fertilizer sector to bridge the gap of demand and supply for two years.

The decision was taken in the meeting of the Economic Coordination Committee (ECC) of the Cabinet, held in the chairmanship of Finance Minister Shaukat Tarin.

On a proposal of Petroleum Division for re-allocation of Oil & Gas Development Company Ltd’s (OGDCL) Jhal Magsi gas to Sui Southern Gas Company Ltd (SSGCL), the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL.

SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.

With the passage of time, the gas demand in the country has increased manifold while the indigenous gas has witnessed natural depletion resulting in widening of the gap between demand & supply. The indigenous gas availability for SNGPL in the financial year 2015 was 1,442 MMCFD, which has depleted to 820 MMCFD. Similarly, the indigenous gas availability for SSGCL in the said financial year was 1,190 MMCFD which has now depleted to 970 MMCFD.

The Mari Petroleum Company, on average, produces 695 MMCFD from shallow and 55 MMCFD from deep reservoirs).

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