SSGC suspends gas to Sindh industries, CNG stations for 48 hours

KARACHI: The Sui Southern Gas Company Limited (SSGC) said on Friday it would suspend gas supply to industries and compressed natural gas (CNG) stations across Sindh province for 48 hours starting from Saturday morning, due to a shortage of gas in its system.

The company, which supplies gas to more than 3 million customers in Sindh and Balochistan provinces, said the closure was in line with a gas supply agreement approved by the oil and gas regulator and a government plan to rationalise gas usage.

The suspension will affect all industries, including their power generation units, and all CNG stations in Sindh, including those operating on liquefied natural gas (LNG), the statement said.

"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 gas utility said in a statement.

SSGC said the closure was necessary because of a reduction in gas availability, which resulted in depletion of line pack and low pressures in the system.

"The closure is due to 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 company said the closure "is in pursuant to Clause #14 of GSA for Industrial Customers approved by OGRA and ECC-approved sector-wise Gas Load Management Plan that rationalises gas usage".

"SSGC will take strict action against any industry found violating this 'Gas Holiday Period' by disconnecting their gas supplies for at least seven days," the company added.

Last week, SSGC suspended gas supply to industries and captive power plants in Karachi, the country's largest city and industrial hub, for two days, citing similar reasons.

Earlier this month, SSGC sought an increase in gas prices by Rs226.18 per metric million British thermal units (mmBtu), saying it faced a shortfall of Rs47.77 billion in its revenue requirement for the current fiscal year.

The Sindh High Court later suspended a notification issued by the oil and gas regulator for a rise in gas tariffs for the textile industry, one of the main export sectors of the country.

Pakistan is facing a severe gas crisis that could lead to up to 18 hours of load shedding due to uncertainties over the arrival of a LNG spot and term cargoes.

The energy ministry officials said the non-arrival of the cargo could aggravate an already projected gas deficit of 360 million cubic feet per day (MMCFD) in December 2023 and 470 MMCFD in January 2024.

The domestic sectors, which are already facing restricted access to gas for only 8 hours during cooking times, could see further cuts to just 6 hours if LNG cargo does not arrive.

Pakistan LNG Limited (PLL), the state-owned company responsible for procuring LNG, is trying to secure spot cargoes for January by seeking regulatory exemptions to speed up the process.

The country is also in talks with Qatar, its main LNG supplier, to increase gas imports to cope with the looming crisis. Both the Sui Southern and Sui Northern gas companies are expected to face an energy shortfall in January, especially if the term cargoes does not materialize.