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Sunday, December 3, 2023

SSGC to halt gas supply of power plants to meet consumer demand

 Gas supply will be stopped for three months starting December 5 (Tuesday)

Sunday, December 03, 2023


Supply to be halted for a considerable length of time beginning Dec 5.
SSGC faces serious shortage in gas supply.
Govt's strategy focuses on gas for homegrown area: SSGC.


ISLAMABAD: Sui Southern Gas Organization (SSGC) said that it will end supply to gas-based power plants in the midst of a huge lack for the homegrown area and elevated interest in winter, particularly in Balochistan, The News detailed Sunday.


As per an assertion, the utility informed power plants it was summoning a proviso in the gas deal understanding that permits it to disengage supply, adding that the stockpile will be ended for a considerable length of time beginning December 5.


"The central government's approach focuses on gas supplies to the homegrown area," it said.


SSGC is confronting a serious deficiency in gas supplies, which have declined by over 39% in the beyond six years, from 1,200 million cubic feet of gas each day (MMCFD) in monetary year 2018 to 730 MMCFD in financial year 2024.


The pattern of reducing gas supplies is obvious while inspecting the information for the first financial years. In FY19, the gas supplies to SSGC were recorded at 1,164 MMCFD, trailed by FY20 with 1,087 MMCFD, FY21 with 984 MMCFD, FY22 with 921 MMCFD, and FY23 with 847 MMCFD.


The descending direction endures, with the most recent figures for FY24 mirroring a further decrease to 730 MMCFD. This declining pattern raises worries about the manageability and sufficiency of homegrown gas assets to satisfy the developing needs and prerequisites of different areas.


Attributable to the shortage of native gas in the framework, the stockpile of gas under the 'contract for the stockpile of gas for power age' is set to be briefly ended. This suspension is booked to happen from December 5, 2023, to February 29, 2024, following provision I of the agreement for the stock of gas for power age (GSA). The suspension of gas supply during this period has been commonly settled upon by the elaborate gatherings.


The agreement states, "Gas supply will be given by the organization on an 'as and when accessible' premise just during the period from Spring to November every year. The purchasers will make double fixing game plans to stay away from loss of creation as and when gas isn't free during Spring to November and furthermore during December to February when the organization will keep the customers' gas supply disengaged at his expense, every year."


SSGC further conveyed that the agreements framed in the GSA between the gatherings expressly certify the organization's right and authorisation to yearly suspend the stock from December to February.


Thus, because of the intense lack and inaccessibility of gas in the framework to satisfy the needs of homegrown shoppers, SSGC is carrying out the abridgement of gas supply compelling from December 5, 2023. This activity is being attempted following the arrangements specified in statement I of the GSA.

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