SSGC asked to take ‘concrete’ actions as gas shortfall hits 350mmcfd

KARACHI: Petroleum Minister Umar Ayub directed Sui Southern Gas Company (SSGC) to take ‘concrete’ measures to check whopping gas shortfall that peaked 350 million metric cubic feet/day (mmcfd) after energy crisis remerged to cripple industrial production and daily lives in the commercial hub.

In a visit the other day, Ayub visited SSGC office given the prevailing gas crisis and rescue calls from the industrialists.

The minister advised the state-owned utility to improve supply situation in its areas of service. SSGC transmission system extends in Sindh and Balochistan comprising over 3,614 kilometers of high pressure pipeline ranging from 12 to 42 in diameter. The distribution activities cover over 1,200 towns in Sindh and Balochistan

The petroleum minister, during the visit, was briefed on supply, demand and unaccounted for gas (UFG) situation. The minister was informed that there was a shortage of 350mmcfd of gas in SSGC system, which hovers around 180mmcfd in summers.

Ayub advised the company management to take concrete measures to reduce UFG, which is approximately more than 10 percent of its total gas supply.

The minister said two main lines are being installed to connect gas fields in Sindh with the SSGC network, but some regulatory hurdles on part of Sindh government delayed the projects. It was told that Sindh government was reluctant to procure re-gasified liquefied natural gas.

The minister advised the SSGC management to make all-out efforts in providing relief to the masses within its franchise areas of Sindh and Balochistan.

Secretary Petroleum Mian Hayad Din, SSGC Managing Director Muhammad Waseem, SSGC Deputy Managing Director Imran Farooqui and other senior officials of SSGC attended the meeting.

Waseem briefed the minister regarding measures undertaken by the company to curtail the demand-supply gap and reduce UFG ratios. With the arrival of winter, natural gas crisis has worsened in Karachi with industrialists saying gas shortage might bring industrial activities to a halt.

Industries located in the Sindh Industrial Trading Estate (SITE), North Karachi industrial area, SITE Super Highway and Korangi are severely affected by gas shortage. Compressed natural gas sector has also been hit by gas shortfall.

Earlier this week, SSGC said two new gas pipelines would be operational in the beginning of the next year, which would be helpful in reducing the shortfall of natural gas in Sindh, especially in Karachi.

The industrialists demanded of Prime Minister Imran Khan to ensure allocation of natural gas to Sindh as per the provisions of Article 158 of the constitution of Pakistan. The industrialists said at least 1,600mmcfd of gas – out of the 2,800 mmcfd gas being produced in Sindh – should be provided to SSGC.

Analysts believe growing demand for gas is driven by expanding consumer base and due to a shift of industries and automobiles on gas from oil over the past decade and a half.

When the transition started taking place the policymakers failed to gauge its impact on long-term balance between supply and demand. Additionally, the opacity of the way the change was allowed to take place hindered long-term planning of energy management.