Gas crisis continues: SSGC suspends supply to industries, CNG stations in Sindh

Pakistan’s gas crisis continued to worsen as Sui Southern Gas Company Limited (SSGC) on Friday announced supply suspension to industries and Compressed Natural Gas (CNG) stations across Sindh.

“All industries including their power generation units and all CNG stations in Sindh (including those being operated on LNG) will observe 48 hours closure from 8am December 30, 2023 (Saturday) to 8am January 1, 2024 (Monday),” SSGC said in a statement.

The company said the closure is due to a shortage of gas supplies in SSGC’s system that has reduced gas availability; hence resulting in depletion of line pack and causing low pressures in the system.

“The closure is in according to clause 14 of GSA (Gas Supply Agreement) for industrial customers approved by the Oil and GAS Regulatory Authority (OGRA) and the Economic Coordination Committee (ECC)-approved sector-wise Gas Load Management Plan that rationalises gas usage,” read the statement.

SSGC warned that the company will take strict action against any industry found violating this “Gas Holiday Period” by disconnecting their gas supplies for at least seven days.

Last week, SSGC, while citing shortage and low pressure, decided to suspend the gas supply for industries and captive power plants in Karachi from December 23, 8am till December 25, 8am.

Earlier this month, the SSGC sought an increase in the prices of gas by Rs226.18 per metric million British thermal units (mmBtu). As per details, the Oil and Gas Regulatory Authority (OGRA) will hear the SSGC’s plea seeking an additional increase of Rs226.18 per MMBtu in gas prices tomorrow.

It projected a shortfall of Rs47.77 billion in its revenue requirement during the current fiscal year. It requested an increase of Rs226.18 per mmBtu in its average prescribed prices effective from July 1, 2023.

Later, the Sindh High Court (SHC) suspended the gas tariff hike notification for the textile industry. The Oil and Gas Regulatory Authority (OGRA) issued a notification for the rise in gas tariffs for the textile industry.