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Gas Supply To Industries, CNG Stations Suspended

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Two state-owned companies have announced a complete shutdown of gas supplies to industries and CNG stations by July 5 due to reduced gas availability, low pressure in the system and dry docking of the LNG terminal.

According to the report, CNG stations across Sindh were scheduled to reopen on June 28 which were closed on June 22, but Sui Southern Gas Company Limited (SSGCL) has suspended gas supply till July 5.

SSGCL is facing an annual shortfall of 160 MMCFD from the Kunar Pasakhi Deep (KPD) gas field due to which there is a shortage of gas and low pressure in the system.

Due to dry docking of the LNG terminal, Sui Northern Gas Pipelines Limited (SNGPL) in Punjab and Khyber Pakhtunkhwa has completed the supply of gas to cement, CNG and non-export industries in three sectors in Punjab and Khyber Pakhtunkhwa.

Energy Minister Hamad Azhar had told a private news channel that the dry docking of the Engro RLNG terminal would reduce supplies to industries and the CNG sector to supply gas to the energy sector.

At a press conference held at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) headquarters in Karachi, stakeholders blamed the government for poor management, ineffective decision-making and the crisis.

FPCCI President Mian Nasir Hayat Mago said that the crisis would be a great loss to the business community and the people alike.

“This will affect businesses and reduce production and exports,” he said.

Mian Nasir said that sales tax on LNG for the CNG sector has been increased from 5% to 17% besides 5% customs duty has also been imposed.

He demanded that the decision be reversed immediately.

The FPCCI chief said that due to the timely import of LNG, the entire country was in the grip of an energy crisis.

He added that it was not the right time to go for the annual repair and maintenance of the LNG terminal.

He said that the government had imported gas itself and did not allow the CNG sector to do so.

Mian Nasir said the nationwide gas suspension was unacceptable as it would hurt the people, industry and the CNG sector.

Ghias Abdullah Paracha, leader of the All Pakistan CNG Association, said energy sector policies were not in line with the ground realities.

He said the crisis would continue till the CNG sector was allowed to import its gas.

“If we import our gas, the load shedding will end and the government will generate Rs 82 billion, but this is not acceptable to some bureaucrats,” he said.



Republic Desk

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