KARACHI: The slowdown in the production from major fields, due to oil shortage issue, has caused a gas crisis in the Southern region of the country, as the Sui Southern Gas Company (SSGC) suspended supply to captive power, CNG stations, while pressure was reduced for domestic and commercial consumers in certain areas of Karachi.
“The system faced a total shortfall of 200mmcfd gas, which has compelled the company to manage the load by suspending supplies to certain sectors in compliance with the sectoral priority order for gas load management as fixed by the government of Pakistan,” SSGC spokesperson said.
The industrialists and CNG station owners resorted to protests and demanded immediate restoration of gas supply.
President Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda has demanded from Sui Southern Gas Company (SSGC) to restore gas supplies to industries, captive power plants and CNG stations in Sindh within 24 hours otherwise if they cannot do so, SSGC’s chairman and managing director should immediately step down from their positions.
“Gas supply has been deliberately suspended in an attempt to pressurize the existing consumers to switch over to RLNG, which is not a feasible option due to high cost. It is highly unfair to supply RLNG to Sindh, which is blessed with sufficient gas reserves,” Makda said.
SSGC system was already facing a shortfall of 150mmcfd that worsened abruptly due to technical issues being faced by Gambat and Kunnar-Pasakhi fields, resulting in further shortfall of around 50mmcfd.
Pakistan Petroleum Limited (PPL) opetates Gambat field while Oil & Gas development Company (OGDC) operates Kunnar-Pasaki.
“The rising shortfall has also led to suspension of gas supplies to captive power plants in accordance with the gas load management plan. In addition, gas supply to power and fertilizer sector has been further slashed to manage the load better,” the SSGC officials said.
Expressing deep concerns over abrupt suspension of gas supply to industries, captive power plants and CNG stations for indefinite period, KCCI urged the federal government, particularly Prime Minister Imran Khan to honor his commitment made during his last visit to Karachi by issuing strict directives to SSGC for uninterrupted supply to industrial units and CNG stations in Sindh.
He also referred to KCCI delegation’s meeting with Federal Finance Minister Asad Umer, Federal Minister for Petroleum Ghulam Sarwar Khan, Federal Minister of State for Revenue Hammad Azhar and PM’s Advisor on Commerce Razzak Dawood in Islamabad in which the gas supply issue was discussed at length and KCCI’s delegation was given assurances that gas would not be suspended yet the SSGC had suspended gas supply to industries and CNG station, which the business and industrial community was unable to understand.
Chairman All Pakistan CNG Forum Shabbir H. Sulemanjee pointed out that the CNG stations in Sindh hardly consume just 2.0 percent i.e. 70mmcfd, out of total available 4,000mmcfd gas for entire Pakistan.
“Gas suspension to this essential sector would raise poverty and unemployment, besides having a severe impact on the economy of the country keeping in view the huge amount of taxes being contributed by the CNG sector”.
SSGC management assured the protestors that as soon as gas supplies increased from the fields leading to improved line pack, supplies to the CNG sector would resume.
Kornagi Association of Trade & Industry and SITE Association also expressed concerns over gas closure to captive power and noted that exports were already declining and in a scenario of no-gas, the industry would not survive and exports would further decline.
SSGC management said SSGC was reviewing demand-supply situation on a daily basis, and as soon as there was any improvement in gas supplies, things would normalize.