Pakistan’s first October LNG cargo berthed at Engro’s terminal on Tuesday, restoring 150 mmcfd of supply after both terminals sat idle. With the second terminal shut and winter demand set to triple, the outlook is fragile.
The LNG carrier Al-Areesh berthed at Engro’s LNG terminal near Karachi on Tuesday morning, ending an 18-day shutdown of the facility and restoring around 150 million cubic feet per day (mmcfd) of regasified LNG to the national gas network. It is Pakistan’s first imported LNG cargo of October.
The vessel berthed at 11:05 a.m., with regasification beginning at noon, according to a Petroleum Division official cited by The News. Engro’s terminal had been non-operational since September 26 because no LNG vessel was available.
A system under strain
The arrival brings only partial relief. Pakistan’s second LNG terminal, operated by Pakistan GasPort Limited (PGPL), has been shut since October 9 due to a lack of LNG inventory, and authorities do not expect another cargo for that facility for eight to ten days.
Between October 9 and October 13, neither terminal was regasifying LNG, leaving the power sector with gas supply of only about 38 mmcfd for electricity generation as of Tuesday, down sharply from normal levels.
Islamabad is attempting to secure three LNG cargoes from Qatar with the assistance of Iranian and US officials, the Petroleum Division official said. But under the latest supply scenario, only two shipments are expected during October — the same number that arrived in September.
Why it matters
The cargo scramble is rooted in QatarEnergy’s force majeure declaration on March 4, after an attack on its Ras Laffan facility — Qatar’s largest LNG production complex — on March 2. The suspension has been extended twice, most recently until November 6, and could be extended further if the situation in the Strait of Hormuz does not improve, according to Geo News.
The timing is uncomfortable. Pakistan expects gas demand to surge with the onset of winter: Sui Northern Gas Pipelines Limited’s requirement is projected to rise from the current 500 mmcfd to 1,550 mmcfd, while Sui Southern Gas Company’s demand could climb from 300 mmcfd to 500 mmcfd.
Domestic production is offering little cushion. Supplies from MOL’s CPF and GPF facilities have fallen to 123 mmcfd against a normal 160 mmcfd because of annual maintenance. A pipeline rupture near Sheri-Khel village has kept 31 mmcfd of gas from the Bettani field suspended since October 9, while another 14.5 mmcfd from MOL’s Mamikhel South well has been unavailable since September 26. Separately, 45 mmcfd of raw gas from the Qadirpur field to Liberty Power has remained suspended since September 17 because of non-payment.
What happens next
A second October cargo is expected within eight to ten days for the PGPL terminal, which would bring both terminals back online. Officials will be watching whether QatarEnergy’s force majeure is extended past November 6 — any extension would threaten LNG imports through the peak winter season, squeezing power generation and industrial consumers at exactly the moment household demand peaks.
Sources
- Geo News — “Pakistan gets first LNG shipment of October amid gas supply concerns”
- Profit by Pakistan Today — “Pakistan receives Qatar LNG cargo, restores 150 mmcfd supply”
