SSGCL Facing 230 Mmcfd Gas Shortage Due To Depleting Reserves, Increased Demand In Winter

SSGCL facing 230 mmcfd gas shortage due to depleting reserves, increased demand in winter

The Sui Southern Gas Company Limited (SSGCL) was facing shortage of 230 mmcfd (million cubic feet per day) gas due to natural depletion of indigenous gas reserves and increased demand of the commodity in peak winter season.

ISLAMABAD, (UrduPoint / Pakistan Point News - 12th Dec, 2018 ) :The Sui Southern Gas Company Limited (SSGCL) was facing shortage of 230 mmcfd (million cubic feet per day) gas due to natural depletion of indigenous gas reserves and increased demand of the commodity in peak winter season.

"In December 2018, the SSGCL is getting 1200mmcfd indigenous gas as compared to 1280 mmcfd gas in same month of the last year. This shortfall of 80MMCfd is due to the natural depletion of indigenous gas reserves," Petroleum and Natural Resources Division of the Energy Ministry said in a press release issued here Wednesday.

In addition, gas supplies from three fields namely Kunner, Pasaki and Gambat have been reduced by 50 mmcfd from November 22, as a consequence of curtailment due to condensate storage problem at the fields and refineries.

Hence, the shortfall is 130 MMCFD as compared to last year. Additionally, about 100 mmcfd gas is also consumed by the domestic sector from December onwards, due to the onset of winter, it added.

To ensure supply to domestic consumers in view of the above gas shortfall of 230 MMCFD, the Petroleum Division said the company issued notices to captive power customers in October 2018, intimating that it would not be able to provide gas from December to February.

Under their agreements, the customers should make alternative fuel arrangements, it added.

Accordingly, the company started reducing gas supply to power sector in Phase-I and issued notices to Captive Power Customers (other than zero-rated) to curtail consumption by 50 percent. However, the Captive Power sector is reluctant to cooperate.

As a result, the SSGCL is constrained to stop supply of gas to Compressed Natural Gas stations from December 10, and it issued notices to Captive Power Units of general industry on December 11 for complete closure. "As soon as gas supplies from the fields are reclaimed and the situation is stabilized, gas supplies from the system will be restored."Commenting on three out of service compressors due to technical fault, it said, the units were meant to supply Regassified Liquefied Natural Gas (RLNG) to Sui Northern Gas Company Limited so the issue (closure of compressor units) had no impact on the SSGCL system.