SSGC cuts gas supply for captive power by 50% in January

• 50% cut replaces full disconnection during peak winter months.
• Clause-1 of GSA invoked for supply on "as available" basis.
• Industries urged to maintain dual-firing arrangements.

KARACHI: The Sui Southern Gas Company (SSGC) has announced a 50% cut in gas supply for captive power generation from January 1 to 31, 2025, citing severe shortages caused by declining reserves, The News reported.

In a notice issued to industrial associations on Monday, the gas utility emphasised the critical shortfall in indigenous gas supply. 

As per the Ministry of Energy's priority order, the winter demand from domestic consumers, especially in Balochistan, will take precedence.

SSGC stated that the gas curtailment aligns with Clause-1 of the ‘Contract for the Supply of Gas for Power Generation’ (GSA), which stipulates that gas is provided on an ‘as and when available’ basis. The clause also requires consumers to maintain dual-firing arrangements to mitigate production losses during supply shortages.

The contract further specifies that gas supply is generally available from March to November, with disconnections during the peak winter months of December to February. However, instead of a complete disconnection this year, SSGC has opted for a 50% curtailment in January to balance supply for the domestic sector.

The utility urged industrial consumers to cooperate and understand the necessity of these measures, pointing to the importance of ensuring uninterrupted gas supplies for residential customers during the winter season.

Last week, on December 27, Prime Minister Shehbaz Sharif directed that uninterrupted gas supply to households be ensured immediately.

PM Shehbaz emphasised that providing gas to domestic consumers remains the government’s top priority.

Chairing a meeting held in Islamabad to review the situation of gas supply across the country, the PM, notice of complaints by the domestic consumers, directed to permanently resolve the issue of the shortage of gas supply by bringing reforms in the system structure.

“Providing gas to domestic consumers is the government’s top priority”, the prime minister said.

During the briefing, it was informed that there was a surplus of RLNG (Regasified Liquefied Natural Gas) in the system, leading to improvements in gas load management compared to last year.

The meeting was told that the duration of gas load shedding this year was shorter than last year.

Gas is being provided to domestic consumers from 5 AM to 10 PM, while gas is also being provided to the power sector according to its demand, the meeting was further informed.

Similarly, it was told that online dashboards for consumer complaints by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) were operational and the complaint resolution rate for SNGPL was 93%, while SSGC’s rate was 79%.

As per the briefing, all gas fields in the country were active.

The meeting was attended by Federal Minister for Economic Affairs Ahmad Khan Cheema, Federal Minister for Petroleum Dr Musadik Malik, the Prime Minister’s Coordinator Rana Ihsan Afzal, and other relevant senior government officials.