KARACHI: This is with reference to the news item entitled ‘KE endeavours to get more gas or RLNG at natural gas rate (June 7, 2022).’ SSGC deems it pertinent to set the record straight on a number of points mentioned in the said news.
SSGC is supplying indigenous gas supplies to K-Electric (KE) on best endeavour basis on the orders of the High Court of Sindh. In the said order, KE was also directed to make payments to SSGC regularly. Effective April 2018, SSGC started supplying RLNG to KE in addition to indigenous gas to meet their requirements as per the decision of Cabinet Committee on Energy (CCOE).
In the said CCoE decision, no threshold of quantities was defined. At that point in time, SSGC verbally agreed with some volume of indigenous gas, which was based on the then demand and supply numbers, which currently cannot be demanded.
It is pertinent to mention that in the last three years, there has a sharp depletion of indigenous gas supplies to SSGC which has witnessed a dent of almost 278 MMCFD gas, i.e. reduction from 1,159 MMCFD in April 2018 to 881 MMCFD in May 2022. Besides this, the allocation/supply of RLNG from SNGPL quota to SSGC which was around 150 MMCFD last year has been reduced to 75 MMCFD this year.
SSGC is supplying almost 100% RLNG it gets to meet the requirements of KE because of its inability to supply indigenous gas any more to the latter. Recently, in clear violation of the orders of the SHC, KE defaulted in payment of its last bill and it was only after some persuasion that the power company started paying up some overdue amount. SSGC categorically states that if KE default persists, SSGC will have no option but to reduce/ curtail gas supplies to KE.
Only recently, in an URGENT APPEAL print advertisement, trade associations including PAAPAM requested from SSGC supply of 130 MMCFD indigenous gas to KE for the sake of supplying cheaper electricity to the industries of Karachi.
In the current scenario wherein supplies of indigenous gas have witnessed a sharp decline in SSGC’s franchise areas, SSGC reiterates that it is ready to offer an immediate solution to the concerns raised by the industrial bodies. SSGC is supplying approximately 220 mmcfd gas to the Captive Power units in its franchise areas out of which a substantial chunk is being consumed by the units producing electricity and selling to the national grid and earning millions. These volumes can be diverted to KE which in turn would substantially lessen it power woes. Resultantly, the entire industry and public in general will eventually benefit from cheap electricity.
SSGC, on the other hand, has requested the Federal Government to intervene and resolve the issue of supplies and timely payment.”
Copyright Business Recorder, 2022
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