SSGC Pledges Priority Gas Supply to Industry Amid Winter Shortfalls

SSGC

KARACHI: Chairperson of Sui Southern Gas Company Limited (SSGC), Asif Inam, has reaffirmed the utility’s commitment to providing gas to the industrial sector on a priority basis alongside domestic consumers, underscoring that uninterrupted industrial activity is essential for Pakistan’s economic stability.

Speaking to industrialists during a visit to the Korangi Association of Trade and Industry (KATI), he said several new members had recently joined the SSGC board, most of whom are key stakeholders with a strong grasp of the company’s operational challenges and possible solutions. He acknowledged that acute winter shortages had forced SSGC to temporarily suspend gas supplies to industry due to declining pressure at gas fields and the absence of alternative arrangements.

Looking ahead, Inam said SSGC plans to develop a comprehensive winter gas load management plan in consultation with industry to minimise disruptions and ensure continuity of industrial operations.

SSGC Acting Managing Director Amin Rajput said Balochistan was currently facing extreme cold, with temperatures dropping to minus 10 degrees Celsius, making gas supply critical for daily life. Despite significant financial losses, he said, the company remains obligated on humanitarian grounds to maintain uninterrupted gas supply to the province.

He noted that most imported RLNG is allocated to Sui Northern Gas Pipelines Limited, while SSGC primarily utilises gas to meet industrial demand, although RLNG availability also tightens during winter months. He added that the exit of captive power plants from the system had reduced gas consumption by about 100 mmcfd, resulting in the loss of customers who previously accounted for gas sales of around Rs100 billion annually.

Amin Rajput said domestic gas production is declining at an annual rate of nearly eight percent, while newly discovered reserves take about two years to be integrated into the system. He added that gas supplies to the fertiliser sector have fallen sharply from around 60 mmcfd to just 2 mmcfd. Expressing cautious optimism, he said gas demand, which typically peaks in January due to severe cold, is expected to ease in February as temperatures rise. He also referred to studies suggesting Pakistan may not require RLNG imports beyond 2031, prompting the government to divert some RLNG cargoes.

Earlier, KATI President Muhammad Ikram Rajput warned that persistent gas shortages and low pressure had already forced some industries to shut down, increasing dependence on alternative fuels and sharply raising production costs. He said repeated hikes in gas tariffs were further suppressing demand and urged the government to rationalise gas prices for the industrial sector.

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