Underground storage is essential for the availability of low-cost gas – Journal

ISLAMABAD: An underground gas storage (UGS) project on the depleted Khorewah-1 gas reserve in Badin district is viable to make low-cost gas available in the country all year round, according to a feasibility study program commissioned by the Asian Development Bank (ADB) said.

The feasibility report was prepared by a Danish consultancy firm in association with German and Pakistani partners under the AfDB Technical Assistance for Gas Development Projects signed by Pakistan and the bank in July 2019.

The report proposed that the project be financed by a combination of debt and equity with the expectation of a debt ratio of 80:20. The Khorewah project will cost $1,388.82 million, and the most likely option for its implementation is a hybrid of public and private participation, according to the financing framework.

The planned storage capacity at the Khorewah gas reserve is 70BCF, which is flexible depending on market demand and supply. The Khorewah gas reserve is found in the sandstones of the Lower Goru Formation.

The AfDB study proposed that the gas be imported via the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and the Iran-Pakistan (IP) gas pipeline and transported to the storage site via the Sui Southern Gas Company pipeline. . Initially, a certain amount of gas would be stored in the storage as a “cushion”, ie the volume of gas required as a permanent stock to support the technical operation of an underground gas storage.

In order to meet the growing energy demands, the government of Pakistan is pushing the implementation of various gas import projects, such as TAPI, Offshore Gas Pipeline Project (OGPP), etc. Currently, Pakistan’s growing energy demands are partially met through the import of liquefied natural gas (LNG).

According to the final report of the economic feasibility study, the development of the project in Khorewah did not result in unacceptable impacts on the environment during the construction phase and will not impose any threat to the environment during the construction phase. subsequent operation.

One of the main concerns of the Pakistani government was the unavailability of an underground gas facility, as the Khorewah mining lease is still valid and in production, with an expiry date of December 2024. The field is still producing, however. , at very low rates. All rates will be zero in December 2020.

The report states that the working gas is the volume of gas in the storage facility above the cushion gas. The injection capacity is the quantity of gas that can be injected daily into a storage facility. Withdrawal capacity is the quantity of gas that can be withdrawn from a storage facility.

The report indicates that there could be an added benefit to having LNG storage capacity in place to supply gas to the South Zone during winter periods, while UGS storage will be primarily used to supply natural gas to the northern region of Pakistan. This has the advantage that the gas can be supplied directly from the LNG storage facility instead of regasifying the LNG, sending it northeast to the UGS facility and then returning it south. in case of high demand.

The report, in addition to the proposed contractual strategy, calls for the need to also consider additional gas supply by constructing storage facilities close to existing LNG infrastructure and adjacent to the connection of the future North-South pipeline, in addition to the construction of a UGS in Khorewah.

Posted in Dawn, July 10, 2022

Bonny J. Streater