SSGC sees no letup in winter gas crisis for two more years

KARACHI: Gas shortages are expected to ease by 2023, a top industry executive said on Thursday, with supply rising by additional 500 mmcf on completion of new RLNG terminals at the port.

“There were difficulties and challenges but picture is rosy as upon completion and activation of Terminal III," Imran Maniar, managing director Sui Southern Gas Company (SSGC) told businessmen at Karachi Chamber of Commerce & Industry (KCCI).

"... if the company decides to make a commitment with terminal owner only if consumers pledge to buy the additional 500 mmcf, it would certainly help resolve the issue.”

Highlighting the overall demand-supply situation, MD SSGC said a total of 4,000 mmcf gas including indigenous and RLNG was being used all over the country.

Of that total SSGC was receiving around 950 mmcf from indigenous resources in Sindh and Balochistan along with 150 mmcf RLNG, while rest was being used by SNGPL (Sui Northern Pipelines Ltd), he added.

“SSGC takes 110 mmcf from natural resources in Balochistan and the rest of 75 percent gas comes into the system from Sindh; however, these reserves are depleting fast at a rate of 10 percent per annum.”

Maniar said SSGC was receiving around 150 to 180 mmcf RLNG from two terminals at Port Qasim “but supply from these terminals shrinks to 70-80 mmcf during winter and demand in Balochistan rises to 120 mmcf which creates an overall gas shortage of around 195 mmcf”.

To deal with gas shortages, he said the ministry had designed a mechanism under which all the consumers from domestic to industrial were ranked from top to bottom.

In that ranking the domestic consumers were at the top of the list, followed by export-oriented industries, while CNG stations were at the bottom and non-export industry was above CNG stations, Maniar added.

“Therefore, SSGC carries out load management during winter season exactly as per list provided by the ministry whereas RLNG supplies to K-Electric are completely cut to zero that helps cover gas shortage by 75 to 80 mmcf, whereas suspension of gas to CNG stations further saves 20 mmcf, reducing the shortfall by 95 mmcf, out of a total shortfall of 195 mmcf.” He further pointed out that there was a tremendous push to get villages gasified that required investment of billions of rupees and huge resources including workforce and equipment.

He said industry was paying 70 to 80 percent of gas being consumed by the domestic consumers as the gas tariff for domestic users was very low and less than any other consumers all over the world including Qatar and Iran.