Govt may place RLNG-fired power plants on preservation mode

ISLAMABAD: The government is likely to place RLNG-fired power plants with a cumulative capacity of over 3,600 MW on preservation mode due to difficulties in arranging RLNG at reasonable rates, particularly after Qatar declared force majeure, well-informed sources told Business Recorder . According to sources, the power sector’s current RLNG requirement stands at around 350 MMCFD, against which only about 80 MMCFD is being allocated by Sui Northern Gas Pipelines Limited (SNGPL). “At present, the entire 80 MMCFD is being supplied to a single power plant,” sources said, adding that RLNG availability may further decline as no new cargoes are expected in the near term. READ MORE: No let-up in ME tensions: RLNG supply crunch hits power sector hard Pakistan operates three major high-efficiency RLNG-based combined-cycle power plants, established between 2015 and 2018 to address electricity shortages. These include the 1,180 MW Bhikki Power Plant in Sheikhupura, the 1,230 MW Haveli Bahadur Shah Power Plant in Jhang, and the 1,223 MW Balloki Power Plant in Kasur, all of which became operational in 2018. Insiders indicated that the government is currently managing the power system by curtailing gas supply from local fields, while RLNG is being supplied to power plants from already-arrived cargoes on a limited basis. Officials warned that any decision to procure RLNG on the spot market — currently priced at around USD 25 per MMBTU from the Red Sea — would significantly worsen the gas sector’s circular debt, which has already reached approximately Rs 3 trillion. However, they noted that spot purchases may still be considered in case of extreme shortages despite the financial implications. “If RLNG supply disruptions persist, the government may resort to a few hours of load shedding nationwide,” a source said, adding that while consumers may tolerate short outages, they are unlikely to accept higher electricity costs under the Fuel Charges Adjustment (FCA) mechanism. However, the Power Division maintained that there is currently no gap between electricity demand and supply at the national grid level, and the system is being managed in a balanced manner. Responding to queries, officials clarified that no scheduled load shedding has been initiated through DISCOs due to a generation shortfall. Any outages being observed are localized and related to distribution-level issues. On RLNG availability, officials confirmed that approximately 80 MMCFD is currently being supplied to RLNG-based power plants. Regarding the possible shift of these plants to preservation mode, the Power Division stated that no final decision has been taken so far. “It is not clear at this stage whether or when these plants will be shifted to preservation mode. The situation remains under review based on system requirements and fuel availability,” an official said. Data shows that in January 2026, the SNGPL supplied around 400 MMCFD RLNG to power plants, which was fully consumed. Electricity generation from RLNG stood at 2,002 GWh in January 2026, accounting for 2.9 percent of total generation at an average cost of Rs 19.93 per unit, compared to 1,542 GWh in January 2025—an increase of about 30 percent. Copyright Business Recorder, 2026

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