CNG stations to remain closed for two days next week

SSGC to cut supply to KESC as well, asks industries to reduce consumption.

KARACHI:

Sui Southern Gas Company (SSGC) has announced that 660 compressed natural gas (CNG) stations across Sindh will remain closed on Monday and Tuesday next week while Karachi Electric Supply Company (KESC) will see decrease of 40 million cubic feet per day (mmcfd) in gas supply due to annual maintenance of a gas field.

Announcing the gas load management plan at a press conference on Tuesday, SSGC Managing Director Azim Iqbal Siddiqui said gas supply would drop by 200 mmcfd due to annual turnaround of Kadenwari field and asked industries to voluntarily curtail their consumption by 20 to 25 per cent.

“The load management plan has been prepared in consultation with CNG and industrial sectors.”

He said SSGC was receiving 1,051 mmcfd of gas compared to demand of 1,250 mmcfd, which would further come down by 200 mmcfd at the end of this week.

“Gas supply from Kadenwari field will start coming down from July 8 and will remain totally suspended from July 9 to 12.” Supply will be fully restored by July 15. However, he said, small commercial and residential consumers would face no shortage of gas.

However, CNG stations in Balochistan had been exempted from gas outages due to limited number of outlets there.

SSGC, KESC agree on new mechanism

SSGC and KESC have agreed on a mechanism for gas supply and payments in an attempt to avoid controversy in future.

According to the mechanism, KESC will make normal payments for 160 mmcfd of gas, but for every increase of one million cubic feet it will pay double the price to clear outstanding dues of Rs27 billion, SSGC Managing Director Azim Iqbal Siddiqui said while speaking at a press conference on Tuesday.

He said SSGC and KESC had a formal agreement on supply of only 10 mmcfd of gas while the government had allocated 236 mmcfd for KESC. He said an agreement on the new supply and payment mechanism would be finalised in the next two weeks.

Published in The Express Tribune, July 6^th, 2011.