ISLAMABAD: The gas crisis continued to worsen as the Sui Southern Gas Company Limited (SSGC) was compelled to suspend gas supply to industries and Compressed Natural Gas (CNG) stations across Sindh.
Sources said the gas shortage in the current winter reached 400 mmcfd, however, the closure of industry and CNG stations helped to reduce the gas shortage to 175 to 200 mmcfd. The gas company has also been facing 15 percent unaccounted-for gas (UfG) against the Oil and Gas Regulatory Authority (OGRA) benchmark of 6.5 percent. The federal government also decided to continue gas to domestic consumers during cooking hours and exempted fertiliser plants from gas load shedding.
The total indigenous supplies during this winter is around 720 mmcfd, whereas, the demand of all sectors is estimated to be 1125 mmcfd. Partial curtailments in the industrial sector are being carried out as per sectoral priority order: domestic and commercial first, power, export-oriented industries and fertiliser second, general industries and its captive power third, cement sector and its captive power fourth and CNG at fifth.
Punjab faces electricity, gas shortages
The suspension of gas supply to industrial units in Sindh has witnessed a decline of 56 percent in the fiscal year 2023-24 from 100 percent in 2015-16. Every year above 10 percent of gas is depleting and the demand of gas is increasing day by day.
“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.
Earlier, 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.
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 the 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 rationalizes gas usage.
The SSGC sought an increase in the prices of gas by Rs226.18 per metric million British thermal units (mmbtu). As per details, OGRA conducted a public hearing on the SSGC’s petition seeking an additional increase of Rs226.18 per mmbtu in gas prices. 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 July 1, 2023.
Copyright Business Recorder, 2024
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