SSGC suspends gas supply to industries, CNG stations in Sindh again

The ongoing gas crisis continued to worsen in Sindh as Sui Southern Gas Company Limited (SSGC) on Friday announced supply suspension to industries and Compressed Natural Gas (CNG) stations across the province.

“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 January 06, 2024 (Saturday) to 8am January 8, 2024 (Monday),” SSGC said in a statement.

The company said the closure is due to a shortage of gas supplies in SSGC’s system, resulting in line pack depletion and low pressure.

“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,” 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 CNG plants in Sindh from December 30, 8am till January 1, 8am.

The gas crisis has worsened on account of shortage compelling the SSGC to suspend supply to industries and CNG stations.

Sources told Business Recorder that 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.

SSGC has also been facing 15% unaccounted-for gas (UfG) against the Oil and Gas Regulatory Authority (OGRA) benchmark of 6.5%.

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.

Last month, the SSGC sought an increase in the prices of gas by Rs226.18 per metric million British thermal units (mmBtu).