SSGC announces to Curtail Gas for Captive Power Users
Staff Report:
The Sui Southern Gas Company (SSGC) has announced a 50% reduction in gas supply to captive power consumers during January 2025 due to a critical gas shortfall.
The decision reflects the ongoing depletion of gas reserves, which has left the company unable to meet growing winter demands, particularly from domestic users in Baluchistan.
In an official notice issued to industrial sector associations, SSGC revealed a sharp decline in gas availability over recent years, dropping from 1,200 MMCFD in 2017-18 to an estimated 690 MMCFD for 2024-25. This decline underscores the challenges faced by the gas sector amidst dwindling reserves and increasing demand.OGDCL Announces Production Commencement from Kunnar West Well-03 in Hyderabad, Sindh
The Ministry of Energy’s gas priority order mandates that domestic users, especially in colder regions, be prioritized for uninterrupted supply during the winter months. Consequently, SSGC invoked Clause 1 of the “Contract for the Supply of Gas for Power Generation” to justify the temporary reduction.
This clause explicitly states that gas supply to industrial consumers will be on an “as and when available” basis during the off-peak months of March to November. For December through February, the contract allows for disconnection or curtailment to support priority domestic consumption.
Despite the severe deficit, SSGC opted for a 50% reduction in lieu of a complete disconnection for captive power users, a measure typically enforced during the winter months.
The company has appealed to industrial stakeholders for cooperation, emphasizing the critical need to support domestic consumers during this challenging period. SSGC reassured its consumers that the measure is temporary and reflects its commitment to adhering to federal policies on gas allocation.
As industries brace for the impact of reduced gas supplies, the broader energy crisis highlights the urgency for sustainable solutions, including increased reliance on alternative energy sources and enhanced gas reserve management.
