KARACHI: Sui Southern Gas Company (SSGC) is currently facing with a gas shortfall of around 240 to 250 mmcfd primarily because of the depletion in indigenous gas supplies and constant increase in gas demand.
In January 2021, SSGC had 1,010 mmcfd average gas available for supply as compared to 940 mmcfd in December 2021. A similar situation is likely to persist this January too. Unlike in the last winter, increase in demand of gas is attributed to demand of the domestic and fertilizer sectors. The operation of the fertilizer sector is crucial for maintaining the fertilizer inventory to avert shortages whereas Balochistan’s domestic sector’s demand needs to be met in view of harsh weather conditions. On the other hand, the government is supplying 75 mmcfd RLNG to SSGC in order to bridge its demand and supply gap in addition to the curtailment measures.
As per the approved priority order listed down in the Gas Load Management Plan, domestic sector stands at first priority in gas supply followed by power and export-oriented industry at second priority and non-export industry at third. SSGC is required to meet the demand of top priority sectors which necessitates rationalizing and managing gas supply within other sectors namely the industry (non-export), CNG and cement, in case adequate supplies are not available for meeting demand of high priority sectors.
In accordance with the approved load management plan, SSGC is required to curtail gas supply to non-export general industries and its captive power (175 mmcfd) and CNG (20 mmcfd) to meet the demand of domestic and fertilizer sectors as well as export industrial units. However, SSGC could only manage to save 50 mmcfd by curtailing CNG and Power sectors. Out of 1,900 units of non-export industry, SSGC could only curtail gas supply to 180 units owing to stay-orders granted by the High Court.
The situation is resulting in widespread low pressures across SSGC’s supply system which is affecting the rest of the industry i.e., fertilizer and export. The continuous operation of non-export industry will have serious impact on overall supply pressures which at times reach at 60 to 70 psig as against the required pressures of 200 psig.
SSGCL is holding meetings with the non-export industry for voluntary reduction in gas supply as well as pursuing the matter at court where stay orders have been granted.
Copyright Business Recorder, 2021
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