Latest news with #RLNG
The Hindu
5 days ago
- Business
- The Hindu
MRPL bags Greentech Environment and Sustainability Summit Award 2025
Mangalore Refinery and Petrochemicals Ltd. has bagged the '24th Global Greentech Environment & Sustainability Summit Awards 2025'in the 'Environment protection' category. The recognition by Greentech Foundation is given for its commitment to environmental protection and sustained efforts to minimise ecological footprint, said a release. General Managers Prasanna Kumar T. and Nirankar Singh received the award on behalf of the MRPL team during a ceremony in New Delhi recently. MRPL's key projects, including the utilisation of RLNG (Regasified Liquefied Natural Gas) as cleaner fuel, installation of in-house developed de-odour unit at effluent treatment plant (ETP), installation of wet gas scrubber for reducing particulate matter beyond compliance, utilisation of treated city sewage water in refinery operations, utilisation of ETP oily sludge at delayed coker unit (DCU) to create useful product etc., , have helped it to adapt a balanced approach towards Business Excellence and Environmental Performance, the release said.
Business Recorder
5 days ago
- Business
- Business Recorder
Short on commitment with SNGPL: Power sector uses 28pc less RLNG
ISLAMABAD: Pakistan's power sector consumed 28 percent less Regasified Liquefied Natural Gas (RLNG) in June 2025 compared to its committed volumes with Sui Northern Gas Pipelines Limited (SNGPL), creating operational and financial challenges for the gas supplier, sources told Business Recorder. According to sources, SNGPL has been persistently flagging the issue to both the Directorate General of Gas (Petroleum Division) and the Power Division. In a recent communication, SNGPL reiterated that the power sector is not consuming RLNG as per the committed demand of 550 million cubic feet per day (MMCFD) for June 2025. Actual average consumption has been around 396 MMCFD, leading to excess gas accumulation in the system. Power sector owes Rs165.256bn to SNGPL SNGPL warned that if RLNG offtake is not increased immediately to meet the agreed demand, high system pressures could disrupt re-gasification operations at both LNG terminals. This could delay cargo discharge and result in financial losses due to demurrage charges and take-or-pay obligations. As an alternative, the company may be forced to curtail supplies from local gas fields. SNGPL requested the Directorate General (Gas), Petroleum Division, to intervene urgently and engage the Power Division for immediate RLNG offtake as per commitments, along with recoupment of unutilized volumes. This is necessary to ensure smooth system operations. The National Power Control Centre (NPCC), now operating as the Independent System and Market Operator (ISMO), is responsible for dispatching power plants based on the Economic Merit Order (EMO). However, in several cases, ISMO has deviated from the EMO due to unforeseen or scheduled outages of various plants. ISMO maintains that partial loading of plants is in line with provisions of their respective Power Purchase Agreements (PPAs), and that operational decisions are made accordingly. Nevertheless, the NPCC's General Manager often faces criticism during NEPRA public hearings for bypassing cheaper, locally fueled power plants in favor of more expensive RLNG-fired units, especially to meet peak demand in Central Punjab. During these hearings, stakeholders proposed that ISMO publish real-time data on generation mix and associated fuel costs to enhance transparency and support informed decision-making. As per the Economic Coordination Committee (ECC) decision of March 19, 2025, the minimum take-or-pay obligation was revised to 50 percent starting January 1, 2025. This adjustment will be applied from May 2025 onwards, as agreed during a meeting of the Power Task Force. In his additional note on Distribution Companies' (Discos) Fuel Cost Adjustment (FCA) determination for April 2025, Member (Technical) Rafique Ahmad Shaikh highlighted that forced outages at cost-effective plants—such as Uch-I and EngroPowerGenQadirpur—during peak demand periods led to underutilization of economical, indigenous resources. He noted that this has increased reliance on expensive power generation and driven up overall fuel costs. While legally permissible, repeated forced outages negatively affect FCA calculations. To improve accountability, he recommended that the System Operator present a detailed financial impact assessment of these outages during FCA meetings, including a three-year history of forced and scheduled outages for each affected plant to evaluate operational performance. Shaikh also pointed out that Partial Load Adjustment Charges (PLAC) amounted to Rs. 2.92 billion ($10.39 million) in April 2025 alone, bringing the cumulative total for FY 2024–25 to Rs. 32.8 billion ($116.73 million). This rising cost is concerning and requires a detailed review. He urged the development of a mechanism to reduce PLAC through better demand-side management and system optimization. In related developments, Pakistan LNG Limited (PLL) has diverted six additional LNG cargoes—originally scheduled for delivery from Italian supplier ENI in July through December—to the international spot market. These diversions come under a 15-year agreement stipulating one cargo per month. Pakistan has also deferred the delivery of five LNG cargoes from Qatar — originally scheduled for 2025 —to 2026, citing reduced domestic demand. Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
SNGPL, SSGC: Weighted average price of imported RLNG cut slightly
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday notified a slight reduction in the weighted average price of imported Re-gasified Liquefied Natural Gas (RLNG) for both gas companies – the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) with effect from June 1, in a monthly review. The Ogra states, 'The slight decrease in RLNG prices is due to slight decrease in Terminal charges'. Terminal charges have gone down to $0.4704 per mmbtu from $0.4843 in previous month. The price has been worked out base at ten RLNG cargoes arrived under long term contracts. The oil and gas regulator set $11.0154 per mmbtu RLNG price for transmission and $11.7816 per mmbtu for distribution for SNGPL consumers which is slightly low on month-to-month basis (May). In previous month, the transmission cost was $11.0257 per mmbtu and $11.7925 per mmbtu for distribution for SNGPL. A 0.09 percent or $0.0103 per mmbtu reduction has been recorded. Whereas, the regulator set $9.7284 per mmbtu for RLNG price for transmission and $10.8650 per mmbtu for distribution for SSGC consumers which is slightly low on month-to-month basis (May). In the previous month, the transmission cost was $9.7367 per mmbtu and $10.8742 per mmbtu for distribution for SSGC. A 0.08 percent or $0.0092 per mmbtu reduction has been recorded. Copyright Business Recorder, 2025
Business Recorder
07-06-2025
- Business
- Business Recorder
Punjab power relief funded by profits of two power companies
LAHORE: After the reduction in electricity tariffs of two power companies - Quaid-e-Azam Thermal Power Private Limited and the Punjab Thermal Power Private Limited - there will be cut in power tariff for the consumers but its impact would not be too significant, it has been learnt. 'There will be definitely reduction in power tariff of electricity consumers in Punjab and the relief will be financed with profits earned by said two government-owned power companies,' sources in the energy department said, adding: 'In light of the Punjab cabinet decision, the provincial government would approach Nepra for a reduction in power tariffs for these two plants so that these price reductions get permanence and are reflected in the new tariff.' It may be noted that the Punjab government had established a special purpose vehicle company by the name of Quaid-e-Azam Thermal Power (Pvt) Limited (QATPL) in March 2015 under section 32 of the Companies Ordinance 1984 in Independent Power Producer (IPP) mode with the mandate to build, own and operate a 1180 MW RLNG based power plant at Bhikki, Shiekhupura on fast track. Punjab CM announces up to 40pc relief in power tariffs The Punjab Thermal Power (Private) Limited (PTPL) is a private limited company incorporated under the Companies Act, 2017. It is wholly owned by the government of Punjab through the energy department. The main objective of the company is to establish and operate a 1263 MW thermal power plant based on RLNG at Haveli Bahadur Shah near Trimmu Barrage, District Jhang in Punjab. It may be recalled that the provincial cabinet in its meeting had given nod to cut the power tariffs of these two plants by 30-40 per cent to reduce electricity bills. This move is similar to the federal government's which recently renegotiated contracts with independent power plants (IPPs) to reduce tariffs, the sources added. 'Both the companies had curtailed its profits as well as reduced non-developmental expenditures to materialize this move.' Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
KCCI urges govt to re-evaluate its energy procurement & pricing strategies
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, has called upon the government to urgently re-evaluate its energy procurement and pricing strategies to safeguard Pakistan's industrial sector and support economic growth. Bilwani emphasized the need to continue purchasing Regasified Liquefied Natural Gas (RLNG) under existing agreement with Qatar but suggested that it be sold to industries at a reduced rate. The pricing gap, he proposed, can be bridged by supplying indigenous gas to captive power plants at lower rates. This, in turn, would ensure sufficient gas supply to industries at affordable rates, enhance productivity, create employment opportunities and prove favourable for the economy. Bilwani highlighted that the import of RLNG, via six vessels per month, costs the country approximately Rs50.5 billion monthly. He proposed that this gas be provided to industries at Rs40 billion, while the remaining Rs10.5 billion be offset through the supply of locally available lower-cost gas. 'The current energy pricing structure is unsustainable for our industries,' he said. 'With soaring energy tariffs, elevated taxes, and high interest rates, our industries cannot compete effectively on the international stage.' He warned that suspending the supply of 400 million cubic feet per day (mmcfd) of indigenous gas to regions under the Sui Northern Gas Pipelines Limited (SNGPL), including Punjab and Khyber Pakhtunkhwa while relying more on expensive RLNG, poses a serious threat to the industrial sector and the national economy. Bilwani stressed the urgent need to foster an enabling environment to promote industrial growth and enhance exports. He noted that due to the sharp rise in gas tariffs, many industrialists have been forced to revert to biomass sources like rice husk, mustard, sunflower, maize waste, and even cow dung to generate steam, finding it more economical than using industrial gas connections. 'Pakistan currently has among the highest industrial gas rates globally,' Bilwani said. 'It's unfortunate that, to deal with load-shedding and erratic electricity supply, the government itself advised industrialists to invest in captive power plants. Following this advice, businesses spent billions on gas generators, boilers for waste heat recovery, and chillers that utilized jacket water to produce free steam and cooling. All of these installations are now rendered ineffective and financially wasteful.' Bilwani also criticized the government's over reliance on International Monetary Fund (IMF) conditions, stating that such policies are being used to justify decisions that severely harm the industrial base. He urged for meaningful consultation with stakeholders to devise balanced, sustainable energy strategies that consider both fiscal constraints and industrial needs. 'We need a clear roadmap that prioritizes the viability of our industrial sector,' he asserted. 'It's time to move beyond temporary fixes and focus on long-term, strategic planning that ensures economic stability and global competitiveness.' Bilwani concluded by stressing that expecting industries to compete internationally while being burdened with the most expensive energy, excessive taxes, and high interest rates is simply unrealistic. 'If the government or the Prime Minister wants us to compete globally, they must first provide a conducive environment,' he said. 'In the current scenario, I cannot understand how industries are expected to survive let alone thrive.' Copyright Business Recorder, 2025
