KARACHI: Managing Director , Sui Southern Gas Company Limited, Imran Maniar Thursday said that gas shortage in the city during the winter may continue for one or two years until the new terminals for the import of re-gasified liquefied natural gas (RLNG are installed at Port Qasim.
According to the press release issued by KCCI, MD SNGPL during his visit to Karachi Chamber of Commerce and Industry, said there were difficulties and challenges but the picture was rosy as on the completion and activation of RLNG terminal-III at Port Qasim, the issue of gas shortage being faced by all types of consumers in Karachi would be resolved.
However, he added, SSGC would make its commitment to the terminal owner if the consumers pledged to buy the additional 500 mmcf.
Chairman Businessmen Group and former president KCCI, M. Zubair Motiwala, Vice Chairman BMG, M. Jawed Bilwani, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, former presidents KCCI Majyd Aziz and Younus Bashir, and representatives of industrial town associations also attended the meeting.
About the overall gas demand-supply situation, MD, SSGCL informed that a total of 4, 000 mmcf gas including indigenous gas and RLNG was being used all over the country, of which around 950 mmcf was being provided to SSGCL from indigenous resources in Sindh and Baluchistan. 150 mmcf of RLNG was also being given to them and the rest of gas was being used by SNGPL.
SSGCL took 110 mmcf from natural resources in Baluchistan while the rest of 75 percent gas comes into the system from resources in Sindh but these gas reserves were depleting fast at a rate of 10 percent per annum.
He said that SSGC took around 150 to 180 mmcf RLNG from two terminals at Port Qasim but the supply shrank to 70 or 80 mmcf from these terminals during winter and the demand for gas in Baluchistan rose to 120 mmcf which created an overall gas shortage of around 195 mmcf.
To deal with gas shortages, he said, the Ministry had designed a mechanism in which all the consumers from domestic to industrial had been ranked from top to bottom in which domestic consumers were at the top of the list, followed by export-oriented industry while CNG stations were at the bottom of the list and non-export industry was above CNG stations.
Therefore, SSGC carries out load management during winter season exactly as per list provided by the Ministry whereas RLNG supply to KE was completely cut to zero that helped in covering the gas shortage by 75 to 80 mmcf whereas suspension of gas to CNG stations further saved 20 mmcf that led to reducing the gas shortfall by 95 mmcf, out of a total shortfall of 195 mmcf, he added.
He further pointed out that there was a tremendous push to get villages gasified which required investment of billions of rupees and huge resources including workforce and equipment who had to be sent to remote areas and villages.
He said the industry was paying 70 to 80 percent of gas being consumed by the domestic consumers as the gas tariff for domestic users was very low and less than any other consumers all around the world including Qatar and Iran as it was being subsidized by the industry.
Chairman Businessmen Group on KCCI, M. Zubair Motiwala pointed out that the first and foremost problems being faced by gas consumers was the low gas pressure in the industrial zones of Karachi and the entire industry was unable to meet its requirements including the efficiency benchmarks and delivery time that intensifies the sufferings for the exporters.
He mentioned that the data of last one decade indicated that 1200 mmcf of gas was available from indigenous resources ten years ago when the industries were utilizing around 385 mmcf gas and then around 7 years ago, a decline to 335 mmcf was witnessed in the industrial consumption which later on picked up but to date, the maximum industrial consumption was not more than 400 mmcf.
“ We are concerned about the future as the demand for gas continues to rise because the industries have imported huge number of machines to enhance their production, ” he remarked.