SSGC faces 115mmcfd gas shortfall

ISLAMABAD: Sui Southern Gas Company Limited (SSGCL) is currently facing a gas shortfall of 115 million cubic feet per day (mmcfd) in the transmission network due to depletion of natural gas reserves and curtailment in production from the fields, its head told the senate standing committee on petroleum on Monday.

Managing Director SSGCL Muhammad Amin said the company received around 12,000mmcfd gas in the current year, as compared to 1,280mmcfd during the same period last year. Senator Mohsin Aziz presided over the meeting.

Amin said the company is making all-out efforts to bridge the gap between demand and supply of the commodity at the earliest by implementing its load-management plan. Shortfall of 80 mmcfd is due to the natural depletion of indigenous gas reserves and in addition to reduction in gas supplies from Kunner and Gambat fields because of condensate storage problem at the fields and refineries.

The company issued notices to captive power customers in October to ensure supply to domestic consumers, intimating that it would not be able to provide gas from December to February. Under their agreements, the customers should make alternative fuel arrangements, SSGCL’s head added.

The body expressed serious concerns over low gas pressure and load-shedding in different parts of Sindh, saying that depriving the province, which is producing around 70 percent of the country’s total natural gas, from its due share was not justified.

The committee members also showed their dissatisfaction over the data provided about gas supply to different sectors, including domestic, commercial, power, zero-rated general industries, industrial, captive power plants, cement and compressed natural gas stations.

The MD SSGCL said gas price is charged as per the rates notified by Oil and Gas Regulatory Authority, adding that the company was not receiving any liquefied natural gas supply and its total reliance was on indigenous natural gas production.

Amin told the committee that in the recent past no substantial gas discovery was made, while existing reserves were constantly depleting and therefore there was no significant addition in net production of natural gas.

On growing volume of unaccounted for gas (UFG) in Balochistan, the managing director said it is working on a plan to introduce fixed tariff in the province for consumers throughout the year to minimise losses.

A senior official of the petroleum and natural affairs division of the energy ministry said around 10 percent constant depletion in natural gas reserves is being recorded, highlighting the importance of expediting oil and gas exploration activities in potential areas on a war footing.

Representatives of Sui Northern Gas Pipeline Limited said the company managed to overcome UFG losses in the Punjab, but it is facing difficulties in Karak district of Khyber Pakhtunkhwa.

They said the company in collaboration with the provincial government is working on a project to lay a network of supply lines in the district to prevent gas theft, adding that it is just waiting for funds to execute the project.

Senators Taj Mmuhammad Afridi, Imamuddin Shouqeen, Sherry Rehman and Sassui Palijo attended the meeting.