End in sight to load-shedding? K-Electric, SSGC make headway in negotiations

KARACHI: There may finally be an end in sight to the city’s load-shedding woes: the two direct stakeholders K-Electric and Sui Southern Gas Company have made a substantial headway in negotiations to resolve prolonged and unannounced load-shedding in the metropolis.

K-Electric has agreed to pay security deposit to SSGC as a customer. Following the payment of the deposit, SSGC has agreed to provide more gas to the power utility company to assist in reduction of load-shedding.

The latest development offers a ray of hope to the more than 20 million residents plagued by long spells of load-shedding, with the rising mercury only adding to the woes.

K-Electric has cited low gas pressure being supplied by SSGC as the reason behind the increased load-shedding. According to a KE spokesperson, power plants have been affected by a gas shortfall of 100mmcf.

SSGC ─ a government-run organisation managing natural gas assets ─ has rebuffed KE’s claim by calling it “misleading”.

KE said it was getting only 90 mmcfd of gas at the moment, which was insufficient to meet the energy demands of consumers, compared to an average of 163 mmcfd in summer 2017 and 193 mmcfd in summer 2016. But according to SSGC, the Gas Supply Agreement between the two companies is for 10 mmcfd only, but SSGC is continuing to supply around 95 mmcfd of gas to KE in the larger interest of the people of Karachi.

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Prime Minister’s directives came while he was chairing a meeting of Cabinet Committee on Energy

Taking notice of the tussle between K-Electric and SSGC, Chief Minister Sindh Murad Ali Shah recently wrote a letter to Prime Minister Shahid Khaqan Abbasi, supporting KE’s claim of gas supply shortage from SSGC.

In his letter, the Sindh chief minister expressed alarm at the increased load-shedding and asked the prime minister to direct SSGC to act in accordance with the ECC decision and not reduce the gas supply.