Pakistan receives first LNG shipment of October

Pakistan has received its first liquefied natural gas (LNG) shipment of October, offering some relief to the country’s strained gas supply system as authorities struggle to secure additional cargoes ahead of the winter season.

The LNG vessel Al-Areesh, carrying a shipment from Qatar, berthed at Engro’s LNG terminal on Tuesday. Regasification operations have resumed, allowing around 150 million cubic feet per day (mmcfd) of re-gasified LNG (RLNG) to enter the national gas network.

The shipment arrived amid uncertainty over international LNG supplies and maritime traffic through the Strait of Hormuz. Officials are working to arrange additional cargoes from Qatar, but the latest supply outlook suggests Pakistan may receive only two shipments during October, matching the number delivered in September.

Authorities have also been seeking assistance from Iranian and US officials to secure further LNG supplies. However, disruptions to Qatar’s exports and uncertainty surrounding shipping routes continue to complicate procurement efforts.

Engro’s LNG terminal had remained shut since September 26 because no LNG vessel was available. The arrival of Al-Areesh has restored operations at the facility. However, Pakistan’s second LNG terminal, operated by Pakistan GasPort Limited (PGPL), has remained non-operational since October 9 because of insufficient LNG stocks.

Officials expect another cargo to be arranged for the PGPL terminal within the next eight to 10 days. Until then, the country’s gas supply system will remain under pressure.

The shortage has already affected fuel availability for electricity generation. From October 9 to October 13, neither terminal was regasifying LNG. As a result, the power sector had access to only around 38 mmcfd of gas for electricity production as of October 13. The resumption of operations at Engro’s terminal is expected to ease some of the pressure by adding 150 mmcfd to the network.

Pakistan’s winter energy outlook remains uncertain following QatarEnergy’s force majeure declaration on March 4. The company took the step after Iran attacked Ras Laffan, Qatar’s largest LNG production facility, on March 2.

QatarEnergy has extended the force majeure twice, with the latest extension continuing until November 6. Further extensions remain possible if conditions in the Strait of Hormuz fail to improve. A prolonged suspension of supplies could disrupt Pakistan’s LNG imports during the period of highest seasonal demand.

Gas consumption is expected to rise sharply as temperatures fall. Sui Northern Gas Pipelines Limited (SNGPL) projects its demand to increase from the current 500 mmcfd to 1,550 mmcfd during winter. Sui Southern Gas Company (SSGC) expects its requirement to rise from 300 mmcfd to 500 mmcfd.

Apart from international supply disruptions, domestic production problems and infrastructure constraints are adding to the pressure. Line-pack data for October 13 showed that gas consumption in the fertiliser sector reached 90 mmcfd, up from 88 mmcfd a day earlier.

Gas supplies from MOL’s CPF and GPF facilities also remained below normal levels because of an annual maintenance shutdown. The facilities supplied 123 mmcfd, compared with their usual output of 160 mmcfd.

Meanwhile, 31 mmcfd of gas from the Bettani field has remained suspended since late October 9 following a rupture in the eight-inch Bettani-Kakakhel pipeline near Sheri-Khel village. The damage occurred at approximately kilometre 26.5 of the pipeline.

Production at MEL’s GTH plant also fell short of its normal level. The facility supplied 65 mmcfd on October 12 against its usual output of 70 mmcfd because of an operational problem.

In another disruption, third-party supplies of 14.5 mmcfd from MOL’s Mamikhel South well have remained suspended since September 26 due to an issue at the well site.

A separate dispute has affected supplies from the Qadirpur field. Around 45 mmcfd of raw gas intended for Liberty Power has remained suspended since September 17 over non-payment.

The combination of limited LNG imports, reduced domestic production and suspended gas supplies has raised concerns about Pakistan’s ability to meet demand from households, power plants and industrial consumers in the coming months.

Although the latest Qatari shipment has restored regasification at Engro’s terminal, the continued closure of the PGPL facility and uncertainty over future deliveries leave the country’s winter gas supply outlook precarious.