High unaccounted for gas - Petroleum Institute of Pakistan

LNG Distribution Plans
&
Infrastructure Development
Pakistan Institute of Petroleum
January 11th, 2016
Kashif Siddiqui
General Manager, LNG-LPG
Sui Northern Gas Pipelines Ltd.
kashif.siddiqui@sngpl.com.pk
Sui Northern Gas Pipelines Limited
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CONTENTS
 Pakistan’s Energy Mix
 Pakistan’s Natural Gas Supply-Demand Projections
 Imbalance of Demand-Supply on SNGPL’s Network
 Demand-Supply Imbalance – Hit to Economy
 RLNG – Lifeline for the Economy
 Allocation of RLNG to Consumers on SNGPL’s Network
 Sector-wise Consumption of RLNG on SNGPL’s Network
 LNG Imports Transaction Structure
 SNGPL’s System augmentation for upcoming LNG Supply
 Supply of Gas to RLNG based 4000 MW Power Plants
Sui Northern Gas Pipelines Limited
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Pakistan’s Energy Mix
Coal
5%
Electricity
13%
Oil
35%
LPG
1%
Natural Gas
46%
Source: Pakistan Energy Yearbook 2014
Sui Northern Gas Pipelines Limited
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Natural Gas Supply-Demand Projections
Sui Northern Gas Pipelines Limited
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Demand Supply Imbalance – SNGPL Network
System Input
Demand
Shortfall
MMCFD
2541
2470
2320
1603
2380
1384
1476
1258
994
1122
1157
717
2012-13
2013-14
2014-15
2015-16
 Natural depletion of existing gas fields and NO addition of major indigenous gas source
 Increase in gas demand on account of expansion in network every year, which results in addition
of 30~40 MMCFD load during summers and 80~100 MMCFD load during winters
 This shortage persists despite MORATORIUM on new Industrial & Commercial connections
since 2011
Sui Northern Gas Pipelines Limited
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Winter Increase in Demand (Nov. – Feb.)
System Input
Demand
Gap
MMCFD
1468
2809
2654
2665
1658
1197
2013-14
1261
2014-15
1393
1151
2015-16
•
The gap between demand and supply is bridged through massive curtailment in Punjab province in all
consumer categories except domestic and commercial consumers on year round basis
•
Total demand of Khyber Pakhtunkhwa (KP) to be met due to decision of Peshawar High Court on
Article-158 of the Constitution, till the time the demand does not exceed the supplies from sources in KP
Sui Northern Gas Pipelines Limited
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LOST OPPORTUNITY
SNGPL’s Operational Infrastructure
Consumers
Distribution
Transmission
• >7,800 Km
• > 5.0 Million
• > 100,000 Km
• > 3200 Towns &
Villages
Compression
• 216,000HP
• 11 Compressor Stations
Gas Sources
• 39 Gas Sources
Sui Northern Gas Pipelines Limited
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Demand Supply Gap - Hit to the Economy
•
Gas supplies were discontinued to consumers where GSAs for firm supply have
expired. These include consumers from Power and Fertilizer sectors.
•
Resultantly, power generation capacity of around 2284 MW either goes idle or shifted
to more expensive Liquid Fuels.
•
Massive investment made in Fertilizer Sector went astray.
•
Further, gas supply to CNG Sector (demand 300 MMCFD) in Punjab, has remained
suspended since November 2014.
•
Resultantly, the billions of rupees worth investments incurred on around 2,300 CNG
Stations and the massive capital put in by all CNG fitted vehicle owners went idle.
The bread and butter of people associated was adversely hit.
•
Additionally, with the onset of winters this year, gas supplies to Industrial sector
(demand 563 MMCFD) across Punjab were also suspended, in order to ensure
maximum availability of gas for highest priority Domestic and Commercial sectors.
•
The costs of energy input raised manifold for the industrial units in Punjab, thereby
resulting in financial losses, decrease in textile exports and threat of unemployment !
Sui Northern Gas Pipelines Limited
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RLNG – Lifeline for the Economy
• LNG imports have been materialized and first flow of Re-gasified LNG
(RLNG) was injected into SNGPL’s network on March 27, 2015.
• Power Sector
Power generation capacity of 2284 MW was brought back into production or
switched from expensive liquid fuels to RLNG.
• Industrial Sector
Over 500 industrial units (mainly export-oriented textile sector) have been
revived during winters to whom gas supplies were suspended.
• CNG Sector
Around 750 CNG stations across Punjab operated even during the month of
December for the first time in many years.
• Fertilizer Sector
Production of fertilizer re-initiated thereby contributing massively to the
agriculture economy of the Country.
Sui Northern Gas Pipelines Limited
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RLNG – Lifeline for the Economy
Before LNG Imports
Current Scenario
(Nov-Dec 2015)
42 MMCFD
129 MMCFD
4 MMCFD
40 MMCFD
(Operational for 7 days only
during 4 months)
(Operational for all 61 days of
Nov-Dec 2015)
Nil
RLNG offered and individual
customers are adding...
4 Hrs for Captive and
17% for Processing
4 Hrs and 17% on RLNG
w.e.f. 25.12.2015
Nil
9 days
Sectors
Power
Fertilizer
General Industry
Textile*
CNG
* Despite reduction in input by around 150 MMCFD and addition of demand by 90 MMCFD,
supplies to Industry continued this winter at par with last year supplies, only due to injection
of RLNG in SNGPL’s system.
Sui Northern Gas Pipelines Limited
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LNG Allocations
POWER
FIRM COMMITMENT
250 MW LNG fired Power Plant of M/s Davis Cogen (Pvt.) Ltd
1200 MW Balloki Power Project
1200 MW CCPP Bhikhi
1200 MW Haveli Bahadur Shah
425 MW Combined Cycle Power Project Nandipur
Rousch
AS AND WHEN AVAILABLE
FKPCL
HALMORE POWER
ORIENT POWER
SAIF POWER
SAPHIRE POWER
KAPCO
FERTLIZER
MMCFD
50
200
200
200
100
85
24
40
40
40
40
140
56
CNG
CNG
INDUSTRY
Textile Industry @ 4 Hrs for Captive and 17% for Processing
Other Individual Industrial Consumers
60
100
Sui Northern Gas Pipelines Limited
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LNG IMPORTS TRANSACTION STRUCTURE
LSA
SPA
(Long Term)
LNG
Suppliers
Re-gasification
Contract
SSGC
(Local
Buyer)
EETL
(Terminal
Operator)
PSO
SNGPL
(Local
Buyer)
MSA
(Spot/Short Term)
Tripartite
Agreement
SSGC
SNGPL
GTA
GSAs with
RLNG
Consumers
Sui Northern Gas Pipelines Limited
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Scope of Responsibilities
• PSO:
Procure LNG, both Long Term (SPA) and Short Term
(MSA) LNG ; and on-sell it right at shore to SSGC and
SNGPL according to their allocations (currently 100%
for SNGPL)
• SSGC:
Make LNG available to EETPL for its own as well as
SNGPL share for Storage & Re-Gasification
• EETPL: Receive, store, and re-gasify LNG under LSA with
SSGC; and deliver RLNG into SSGC network
• SNGPL: Receive RLNG from SSGC (through swap
arrangement initially) and sell it to designated buyers
Sui Northern Gas Pipelines Limited
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SYSTEM AUGMENTATION FOR LNG SUPPLY
AUGMENTATION PLAN
SNGPL has prepared an augmentation plan of its system
downstream Sawan (Sawan is starting point of SNGPL
pipeline system which is located in District Khairpur
Province Sindh) to receive additional LNG supply up to
1.2 BCFD on the basis of two Projects under the
nomenclature i.e. Project-1 & Project-2.
Sui Northern Gas Pipelines Limited
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SYSTEM AUGMENTATION FOR LNG SUPPLY
Objective
Transportation / receiving of additional 400 MMCFD
LNG Supply into Company’s system
Infrastructure
Involved
a- 42”dia x 111.355 KM Pipeline from Sawan to Qadirpur
(Qadirpur is located in District Ghotkhi, Province Sindh)
b- 5000 HP compression at AC1(X) Bhong
Estimated Project
Cost
Rs. 18,543 million.
Project Approvals
Project has been approved by our Board of Directors as well as OGRA.
Project Financing
Syndicated term finance loan has been arranged from consortium of
eight banks.
Project Completion
date
Nearing Completion.
Sui Northern Gas Pipelines Limited
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GAS SOURCE
COMPRESSOR
STN.
EXISTING PIPELINES
PROPOSED PROJECT-1
(42”DIA. X 111.355 KM)
COMPLETED
PROJECT -1 MAP
Sui Northern Gas Pipelines Limited
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SYSTEM AUGMENTATION FOR LNG SUPPLY
Objective
Transportation / receiving of 1200 MMCFD LNG including 400
MMCFD LNG of Project-1 into Company’s system.
Infrastructure Involved
a- 16” to 42” x 762 KM Pipeline
b- 25000 HP compression at AC1(X)
and AC 6 (Multan)
Estimated Project Cost
Rs. 57,941 million.
42”
36”
30”
24”-16”
-
70 KM
303 KM
109 KM
280 KM
Engineering and material procurement activities are in progress.
Project Status
Project Financing
GOP has approved the provision of sovereign guarantee for
commercial loan, terms of which are being finalized and are in
advance stages of financial close. For stop gap arrangement, Company
has secured bridge finance facility of Rs. 15 billion.
Project Completion date
Sui Northern Gas Pipelines Limited
December, 2016
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GAS SOURCE
COMPRESSOR
STN.
EXISTING
PIPELINES
PROPOSED PROJECT 2
(42”-16” Dia x 762KMs)
Sui Northern Gas Pipelines Limited
PROJECT -2 MAP
Summary of Pipeline
42”
70 KM
36”
303 KM
30”
109 KM
24”
145 KM
18”
65 KM
16”
70 KM
Total
762 KM
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SUPPLY OF GAS TO RLNG BASED
4000 MW POWER PLANTS
Quantity of
Gas required
(MMCFD)
Infrastructure Proposed
Estimated Cost
(Rs. Million)
Bhikhi
(Govt. Of Punjab)
200
30” dia x 18 Km
1360
Balloki
(Govt. Of Pakistan)
200
30” dia x 8 Km
880
Haveli Bahadur Shah
(Govt. Of Pakistan)
200
30” dia x 38 Km
2800
Nandipur
(Govt. Of Pakistan)
100
24” dia x 85 Km
4750
Power Plant Location
Sui Northern Gas Pipelines Limited
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SUPPLY OF GAS TO RLNG BASED
4000 MW POWER PLANTS
Sui Northern Gas Pipelines Limited
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THANK YOU
&
Questions, if any!
Sui Northern Gas Pipelines Limited
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