Southern Gas Company Limited (SSGC) has taken strong exception towards the aggressive attitude of certain trade associations despite the Government of Pakistan and SSGC’s efforts to mitigate the gas supply situation.
In a statement, the company said that it must be understood that with the advent of winter as gas demand increased manifold, SSGC started implementing Cabinet Committee on Energy’s (CCOE) Load Management Plan by disconnecting non-export industrial and captive power connections.
The company said that it was able to suspend gas to only 225 industrial units due to stay orders from the industrial units, and ultimately, there was the issue of line-pack and gas pressure. Consequently, SSGC tried to implement a framework, along with the industries to rotate industrial areas every 5th day to generate 90 MMCFD gas. This arrangement did not work as industries continued to remain unhelpful, and SSGC could only make 15 MMCFD available to the sector, it added.
It further said that as a result, both the industry and domestic sector are in free flow as SSGC is unable to cut industry demand to create required pressure. Stay orders, whether it’s against disconnection or price increase, are costing SSGC heavily and affecting the company’s efforts to keep its infrastructure intact through robust rehabilitation and reinforcement, and also, in its anti-gas theft efforts being taken to curb line losses.
To achieve these major objectives, SSGC needs heavy funding and healthy cash flows, but sadly, the industry’s practice of approaching courts on one pretext after another and seeking refuge under stay orders is ultimately impacting the company’s development activities meant for its consumers.
Moreover, with regards to the demand of industries that 280 MMCFD gas be brought back to Sindh, it must be understood that allocation of gas fields is the prerogative of the Federal Government, and interpretation of Article 158 is pending at the Supreme Court level, the statement read.
SSGC, which serves the franchise areas of Sindh and Balochistan, is currently faced with a shortfall of around 240 MMCFD. The phenomenal increase in space and water heating needs is one reason. Other reasons are the constant depletion in indigenous gas supplies of around 9-10 percent and lack of any major gas discoveries in over a decade, it added.
The company is focused on ensuring sustained gas supplies to all its stakeholders, but in the current situation, a more prudent and cooperative approach would have been a much better option, it said.
