SSGC responsible for loadshedding in industrial areas: KESC tells National Assembly panel...

Sui Southern Gas Company Limited (SSGCL) is responsible for load shedding in the industrial areas of the metropolis as the Karachi Electric Supply Company (KESC) is not being provided 180-mmcfd gas as promised, which is the main cause of 300MW shortage.
This was stated by a high-level official of KESC during the meeting of the National Assembly Standing Committee on Textile Industry. The official informed the committee that the company has available generation capacity of 1300 MW while the demand is 1700 MW and the gap was being met through load shedding. "The power generation has reduced due to non-provision of 180-mmcfd promised gas to KESC. On the contrary only 70-80 mmcfd gas is being provided to the company," the official said. He claimed if the SSGC provides 180-mmcfd gas to KESC, there will be no load shedding. He emphasised that if the company goes for power generation through furnace oil the cost of power might increase that would overburden consumers with high tariff rates.
The National Assembly Standing Committee urged the gas utility and the government to review its decision of total curtailment of gas to industrial sector and provide some share to the industry so that the country''s textile export target could be achieved. Chairman of the Committee Haji Muhammad Akram Ansari said the power shutdown might create problems for 8-10 lac industrial workers in Punjab.
An official of the SNGPL informed the committee that the company is confronting severe gas shortage while Peshawar High Court (PHC) has stopped gas load shedding in Khyber Pakhtunkhawa. In such situation the company has to carry out load management in Punjab, Federal Areas and Azad Jammu and Kashmir. The SNGPL is faced with a huge gap in winter months as the domestic sector consumption increases manifolds resulting in a large gap between demand and supply. As the supply is almost constant throughout the year with minor increase/decrease, the gap is met through curtailment in supply to various sectors ie fertiliser, industrial and CNG. "During the current winter months, the gas supply has reduced by 125-150 mmcfd, whereas consumption has increased by 200 mmcfd when compared with the corresponding months of last winter. Therefore, domestic sector is also facing low pressure especially, localities on the pipeline tail," the official emphasised. The official said the company has only 200 mmcfd gas, which might be provided to CNG or industry or fertiliser sectors. The government has to take decision in this regard.
Chairman of the committee said that the shortage of gas should be shared among all the provinces and it is not right to put burden on one province. The weaving and sizing associations demanded the supply of gas to their industries, which had been curtailed for the last several days. Sui Northern Gas Pipelines Limited has laid 40,000 kms gas pipeline but with no increase in supply of gas that has doubled the demand, which created severe gas shortfall. The directives of a further 30,000 kms pipelines have also been issued that might lead the system towards collapse. They also warned that the textile sector is the only foreign exchange earner of the country and it would be difficult for them to achieve the required export target.
KESC''s installed power generation capacity is more than 2000 MW but the available capacity is less due to multiple reasons including shortage of gas. The officials said that industrial consumers are the main earning sector for the company, but if there is no power, from where it would be provided to them?
The committee directed KESC to reduce line losses, which at present are about 32 percent. It also directed the secretary ministry of textile to contact his counterpart in ministry of petroleum and natural resources to ensure gas provision to KESC. The committee also asked the secretary to take the reinstatement of SRO 282 by the FBR, which includes 5 percent sales tax on power loom sector. The FBR had earlier exempted the sector from sales tax but now it has withdrawn the facility.
Taking serious note of the absence of Textile Minister Makhdoom Shahabuddin in the meeting, the committee decided to send a letter to Speaker National Assembly and Prime Minister. "If he (the minister) is not interested in the ministry affairs, his portfolio should be changed, the committee suggested.