SSGC Halts Gas Supply to Industries and CNG Stations in Sindh
Karobar
In a concerning development, the gas crisis in Pakistan has taken a turn for the worse, with the Sui Southern Gas Company Limited (SSGC) announcing a suspension of supply to industries and Compressed Natural Gas (CNG) stations across Sindh.
According to a statement released on Friday, SSGC declared a 48-hour closure, affecting all industries, including their power generation units, and all CNG stations in Sindh, from 8 am on December 30, 2023 (Saturday) to 8 am on January 1, 2024 (Monday).
The decision to suspend supply was attributed to a shortage of gas supplies in the SSGC system, leading to reduced gas availability, depletion of line pack, and low pressures in the system. SSGC clarified that this closure aligns with Clause 14 of the Gas Supply Agreement (GSA) 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.
GAS SUPPLY SHORTAGE - INDUSTRIAL & CNG CLOSURE. 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 8 am Dec. 30, 2023 (Sat.) to 8 am Jan. 1, 2024 (Mon.). The closure is due… — SSGC Official (@SSGC_Official) December 28, 2023
SSGC issued a stern warning, threatening strict action against any industry found violating this "Gas Holiday Period" by disconnecting their gas supplies for at least seven days.
This move follows SSGC's decision last week to suspend gas supply for industries and captive power plants in Karachi due to a shortage and low pressure.
The ongoing gas crisis has further escalated with SSGC seeking an increase in gas prices by Rs226.18 per metric million British thermal units (mmBtu). The Oil and Gas Regulatory Authority (OGRA) is set to hear SSGC's plea for the additional increase in gas prices, projecting a shortfall of Rs47.77 billion in its revenue requirement for the current fiscal year.
In a related development, the Sindh High Court (SHC) intervened by suspending the gas tariff hike notification specifically for the textile industry, issued by the Oil and Gas Regulatory Authority (OGRA).
