RLNG Crisis Hits Pakistan’s Gas Network

Introduction

RLNG Crisis Hits Pakistan’s Gas Network . Pakistan is facing a serious energy management issue due to the underutilization of RLNG (Regasified Liquefied Natural Gas) by power plants. The Petroleum Division has sounded the alarm, warning that low consumption levels are placing the country’s gas distribution network at serious risk. The situation not only threatens operational stability but may also bring financial losses and delays in LNG supply handling.

This article presents the latest developments in simplified English, while optimizing for SEO performance for keywords relevant to energy, gas crisis, and power sector in Pakistan.

RLNG Off-take Drops Far Below Commitment

According to Sui Northern Gas Pipelines Limited (SNGPL), the actual RLNG usage by power plants on July 16, 2025, was 327 million cubic feet per day (MMFCD) — far below the committed 600 MMFCD.

This gap has led to an oversupply of gas in the system. As a result, pressure in the pipelines is rising to dangerous levels, increasing the chances of system failure or operational breakdowns.

SNGPL Raises Red Flag Over Surplus RLNG

A formal letter from SNGPL dated July 15, 2025, warned that if RLNG usage is not increased immediately, the situation could:

• Disrupt re-gasification operations at LNG import terminals

• Lead to delays in offloading LNG cargo

• Trigger demurrage charges and financial penalties due to “take-or-pay” contract terms

Under these agreements, Pakistan must pay for the gas whether it is used or not, meaning financial damage is likely if storage becomes overloaded.

Petroleum Division Urges Power Sector to Act

In response to this growing concern, the Petroleum Division’s Directorate General (Gas) has officially asked the Power Division to increase the RLNG off-take and stick to the agreed quantity.

The concern is that if RLNG consumption does not match the supply, SNGPL may have to cut local gas production, which could make existing energy shortages worse and disrupt broader electricity generation operations.

RLNG vs. Cheaper Electricity: A Policy Tug-of-War

Power Minister Awais Leghari has defended the current Economic Merit Order (EMO), saying that the electricity dispatch system is based on cost-efficiency. According to the EMO, power plants using cheaper fuel sources are given preference, and RLNG is only utilized when it meets that criteria.

In contrast, Petroleum Minister Ali Pervaiz Malik criticized the underuse of RLNG-based power plants, especially by Independent Power Producers (IPPs). He emphasized the potential risks to the gas infrastructure and urged better coordination between gas and power sectors.

Nepra Investigates EMO Violations

The National Electric Power Regulatory Authority (Nepra) has been reviewing whether there have been violations of the Economic Merit Order. These violations could result in increased fuel cost adjustments for consumers and strain on the national power grid.

Although public hearings have been held, Nepra has yet to release an official update on:

• Financial penalties faced by the National Transmission & Despatch Company (NTDC)

• Possible impacts of EMO violations on future energy costs

Earlier, NTDC was denied billions in requested funds due to similar operational and regulatory concerns.

LNG Oversupply Adds to Energy Sector Woes

The issue of declining RLNG consumption comes at a time when the gas sector is already facing challenges like:

• LNG oversupply with no immediate usage

• Increasing circular debt within the energy chain

• Uncoordinated planning between gas and power divisions

These challenges were discussed in recent high-level meetings involving the Secretary of Petroleum and other senior energy officials. They collectively emphasized the urgent need for inter-sectoral coordination.

Energy Sector Must Align Strategy

To prevent further complications, energy leaders are calling for:

• Better planning of RLNG usage based on actual electricity demand

• Clear communication between power and gas divisions

• Pricing reforms to make RLNG more competitive and easier to integrate into the EMO

• Avoidance of take-or-pay penalties by aligning imports with consumption

Without immediate action, Pakistan’s energy supply chain could face financial, operational, and logistical turmoil in the months ahead.

Why This Matters for Pakistan’s Economy

The imbalance in RLNG supply and demand is more than just a technical issue. It highlights deeper flaws in policy coordination, infrastructure planning, and energy pricing. Delays in addressing this could result in:

• Increased load shedding

• Higher electricity bills for consumers

• Wasted foreign exchange spent on unused LNG

• Investor mistrust in Pakistan’s energy management system

For a country already burdened with economic instability, fiscal deficit, and depleting foreign reserves, such misalignments can have long-term consequences.

SEO Summary

This SEO-optimized news article covers the growing rift between Pakistan’s Petroleum Division and Power Division over RLNG underuse, detailing:

• Actual RLNG usage vs. committed levels

• SNGPL system pressure alerts

• Risk of financial losses due to demurrage and take-or-pay clauses

• Power sector defense via Economic Merit Order

• Nepra’s investigation into regulatory violations

• Oversupply of LNG and circular debt buildup

• Energy policy reforms and coordination recommendations

This content targets keywords like “RLNG shortfall Pakistan 2025”, “SNGPL gas pressure issue”, “take or pay LNG contracts Pakistan”, and “power sector coordination issues”.

Conclusion

Pakistan’s energy sector is at a critical crossroads. The misalignment between LNG imports and electricity generation is creating serious challenges for both financial planning and energy reliability.

As the situation continues, it becomes vital for policymakers to ensure synchronized operations between gas and power sectors, avoid costly delays, and safeguard the country’s energy stability.