SSGC decides to curtail gas supply to non-export industries

November 27, 2021 (MLN): Sui Southern Gas Company (SSGC) has decided to curtail gas supplies to all captive power plants (CPPs) for general industries (non-export) across Sindh and Balochistan with immediate effect till further orders, a letter issued to general industries said.

According to the letter, SSGC says that the discontinuation of gas supplies to these CPPs is being exercised under the Gas Sales Agreement (GSA) signed with CPPs, as the very agreement clearly states that “Gas supply will be provided by the Company on 'as and when available' basis only during the period from March to November each year.

The consumer will make dual firing arrangements to avoid loss of production as and when gas is not available during March to November and also during December to February when the company will keep the consumers' gas supply disconnected at his cost, each year. “
Gas supply to CPPs shall remain discontinued lilt further orders. However zero-rated export industry including its CPPs along with the fertilizer sector will continue to get the gas.
The volume of gas curtailed from this arrangement would be diverted to domestic customers for them to cater to their enhanced gas loads in the context of the winter season
It may be noted that in Balochistan, supply of additional gas is a must for the survival of human lives since gas serves as a LIFELINE to scores of populace needing to keep themselves warm through water and space heating gas appliances in the extremely low temperatures

With the advent of the winter season, SSGC is facing severe shortage in the indigenous gas receipts from producers every passing day resultantly depleting line pack and simultaneously.

SSGC is also experiencing increased gas consumption in the domestic sector that peak during winter seasons and ultimately causes low gas pressure in the system. Catering to such eventuality, as always done SSGC follow the guidelines, as circulated vide load management policy of October 2018 to tackle such situations.
Foregoing in view. it is requested to please advise members of general industries to henceforth cease 100% consumption of gas in all captive power units operative at general industries, which is essentially required to be done in the larger interest of the general public and the closure of gas to all above said Captive Power Plants, however, shall remain effective till further orders.

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Posted on: 2021-11-27T23:16:31+05:00