Hammad Azhar admits Karachiites facing severe gas shortage

December 24, 2021 (MLN): Federal Minister for Energy, Hammad Azhar admitted on Friday that domestic gas consumers in Karachi have been facing the problem because of supply gaps on account of a surge in demand and falling reserves.

As per the priority order of Cabinet, the share of non-export general industry and captive power plants is supplied to domestic consumers during winters.

This year, Sindh High Court (SHC) had issued a stay as per which Sui Southern Gas Company (SSGC) is not allowed to slash the supply of general industry and captive power plants, he added.

To note, on Dec 17, The Sindh High Court (SHC) had restrained the Sui Southern Gas Company (SSGC) from reducing the supply of natural gas to non-export industries till Jan 11.

The next hearing is to be held on Dec 30, 2021. The minister directed the Managing director (MD) of the company to plea for an urgent hearing to provide gas supply to domestic users.

Talking to the media, the minister also added that the demand for gas in winters increased by three to five folds.

“In this regard, I have directed the Managing Director of SSGC to request High Court for urgent hearing so that the issue can be resolved at earliest.”  

With the advent of winters, the country has been facing a shortage of gas in winters for the last many years.  “From last two years, Pakistan’s natural gas reserves are depleting by 9%. We receive 18-19% less supply from reserves every year," he added.

LNG cargoes are quite expensive and if that is supplied through the domestic gas pipeline, the government would face losses which is not feasible.

This year we have also announced the seasonal winter energy package for electricity consumers in what appears to be an attempt to encourage electricity consumption during the winter season against the usual reliance on natural gas in this period. Under this seasonal package, the consumers will be charged Rs12.96 per unit after consumption of 300 units of electricity during the winter months.

Besides, no fuel price adjustment and quarterly tariff adjustment would be charged on said units.  

He again assured that team of SSGC and SNGPL both are trying their best to manage the growing demand for gas amid depleting reserves.  He is optimistic that the honorable court will consider their request which will soon dissipate this gas crisis.

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