The Sui Southern Gas Company Limited (SSGC) today would like to clarify the misguiding news circulating in the media regarding the suspension of gas supplies to the industrial sector through a statement which says that the gas utility is not suspending regular gas supplies to the industries. The gas company has pointed out that their letters to the industrial customers have been misinterpreted by the industrial and trade organisations through their media statements that need to be clarified.

Recall that SSGC has written letters to each industrial customer using gas for POWER GENERATION for suspension of gas supplies only for power generation and not for their regular usage.

Given the widening demand and supply gap, especially with the drop in mercury, the Company implements the Government of Pakistan’s Gas Load Management Plan, whereby it gives top priority to the domestic and commercial sector for supplying gas, especially those living in Balochistan where demand for gas increases manifolds due to space and water heating needs. This situation is further compounded by the fact that gas reserves are being fast depleted at an annual rate of 10%, further placing pressure on the Company’s line pack system.

As part of this plan, gas supplies to all local industrial customers for power generation are suspended for three and a half months, i.e. from November 15, 2022 to February 28, 2023. Moreover, 50% reductions in supplies of Export industrial units for their power generation shall also be suspended for the same period.

These closures align with the contract signed between SSGC and each individual industrial customer that states that _”The Company will provide gas supply on ‘as and when available basis’ only from March to November each year. The Consumer will make dual firing arrangements to avoid loss of production as and when gas is unavailable from March to November and during December to February when the Company will keep the Consumer’s Gas supply disconnected at his cost each year.”_

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 winter season. It may be noted that gas thus saved (approximately 160 mmcfd gas) will then be diverted to Balochistan, where a supply of additional gas is a must for the survival of human lives, as gas serves as a lifeline for the majority of the population.

SSGC looks forward to all industrial customers for their understanding of the matter and expects their cooperation to serve the domestic customers better through uninterrupted gas supplies.