Tag: SSGCL

  • SSGC cuts gas supply to industries in Karachi to facilitate domestic customers

    SSGC cuts gas supply to industries in Karachi to facilitate domestic customers

    Owing to the Sui Southern Gas Company Limited’s (SSGC) decision to stop supplying gas to several industries throughout the city, the gas crisis in Karachi appears to have gotten worse.

    “In adherence to the Ministry of Energy (Petroleum Division) gas load management plan, that places domestic and commercial customers on top of the priority list, it has been decided to suspend gas supply to all general industries from November 15 to February 28, 2023,” a statement issued by the gas company read.

    The decision, according to the statement, is intended to accommodate the rising demand from domestic customers in Sindh and Balochistan.

    It should be remembered that due to a gas shortage, all CNG stations in Sindh have already been closed for two and a half months.

    According to Geo, the SSGC delivered notices last week that gas will be shut off for more than three months over the winter to the city’s industries, but they rejected the notices, claiming that gas interruptions would result in large layoffs and the closing of firms.

    “The industries are in a state of shock to receive SSGCL’s notices of gas closure starting from November 15, 2022, to February 28, 2023,” according to Karachi Chamber of Commerce and Industry (KCCI).

    “The gas closures can not be proved good for the economy, especially this year, as no special arrangements have been made by the government to purchase RLNG to inject in the system.”

    The committee, established by KCCI, stated that it expected the government to take the proper steps to ensure gas supply to the city’s industries rather than completely cutting off gas, which would cause a significant drop in exports and revenue, the closure of industries, and job losses.

    The committee had suggested to the government that the gas supply be shut off every 12 hours for two days each week during the winter.

  • Major policy shift: Gas companies told to reduce tariffs

    Major policy shift: Gas companies told to reduce tariffs

    The government of Pakistan has officially directed the board and managing directors of the two gas utilities to cut down major revenue sources to provide relief to consumers through lowering tariffs reported DAWN.

    In a letter, the petroleum division has asked the chairpersons and managing directors of the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) to seek approval of their boards for lower revenue requirements in the consumer tariff.

    The companies have been asked to reduce their benchmarks of unaccounted for Gas (UFG) from 6.3 per cent to 4pc. This will cut gas companies’ revenue by Rs10bn a year.

    Secondly, they are also asked to reduce their rate of return from 17 and 17.5pc to 15pc with a revenue loss of about Rs5bn a year.

    Third, the directives also demand one per cent reduction in the rate of depreciation on assets with the financial impact of another Rs5bn. On top of that, both companies have also been asked to find ways to reduce their overall operational costs to create another fiscal space of about Rs5bn.

    The letter, written by petroleum secretary Asad Hayauddin, has conveyed to the boards and management of the two companies that these areas have been identified through a review of “various options to decrease the gas sales prices with a view to providing relief to the gas consumers”.