ISLAMABAD: The Sui Southern Gas Company (SSGC) has announced a crucial decision to suspend gas supply to power plants, prioritizing domestic consumers amid a substantial shortage and increased winter demand, particularly in Balochistan.
As per the statement released, SSGC has invoked a clause in the gas sale agreement, allowing the company to disconnect supply to power plants for three months, starting from December 5. The decision aligns with the federal government’s policy, emphasizing the prioritization of gas supplies to the domestic sector.
Facing a severe deficit in gas supplies, SSGC has witnessed a decline of over 39% in the past six years, from 1,200 million cubic feet of gas per day (MMCFD) in fiscal year 2018 to 730 MMCFD in fiscal year 2024. The diminishing trend is evident in the data for the preceding fiscal years, raising concerns about the sustainability of domestic gas resources.
Due to the scarcity of indigenous gas, the supply of gas for power generation will be temporarily halted from December 5, 2023, to February 29, 2024. This suspension, following clause I of the gas sale agreement, has been mutually agreed upon by the involved parties.
The terms and conditions outlined in the gas sale agreement explicitly grant SSGC the right to suspend gas supply from December to February annually. In response to the acute shortage and unavailability of gas to meet domestic consumer demands, SSGC is implementing the curtailment of gas supply effective December 5, 2023, following the provisions stipulated in the agreement.
