Dropping temperature: SNGPL curtails gas supply to industries

Move comes after sudden surge in demand from domestic consumers


Shahram Haq December 20, 2019
PHOTO: Reuters

LAHORE: Sui Northern Gas Pipelines Limited (SNGPL) on Thursday curtailed gas supply to general industries and compressed natural gas (CNG) stations in Punjab because of a sudden surge in demand from domestic consumers throughout its network.

The gas distribution company, however, said it would continue supplying gas to the zero-rated industries under its jurisdiction.

“In the wake of increasing gas consumption by the domestic sector due to the current cold wave in the country, SNGPL has decided to temporarily discontinue gas supply to the general industries and CNG sector,” read a statement issued by the public gas utility.

According to an SNGPL spokesperson, gas supply to the zero-rated industries will not be impacted by the decision.

“It was further clarified that the decision has been taken on a temporary basis due to the current situation and supply to the general industries and CNG sector will be restored as soon as the situation gets normal.”

Gas demand peaks around 3,000 million cubic feet per day (mmcfd) on SNGPL’s network in winter.

According to the company, the gas supply - a mix of natural gas and imported re-gasified liquefied natural gas (RLNG) - is not that low. However, the demand from domestic consumers is reaching the highest level following the sudden fall in temperature, which triggered the use of gas heaters and geysers.

Sui Southern Gas Company (SSGC) has recently curtailed gas supply to just the CNG stations, however, SNGPL has stopped supply to the general industries as well.

Many areas in the densely populated metropolitan cities under the SNGPL system have been facing low or no gas pressure for the past many days since the temperature has dropped. The company, for the past many years, has been curtailing gas supply to the industries in a bid to cater to the domestic requirement - a top priority of nearly every government.

The company pointed out that it had a contract for gas supply to the industries for only nine months in a year. “So, the company can curtail supply to the industries whenever it wants. However, we will restore supply to the general industries whenever the demand-supply gap narrows.” The CNG sector, on the other hand, has rejected the SNGPL’s decision.

“We reject the SNGPL’s decision of curtailing gas supply to the CNG sector; it’s illegal,” said All Pakistan CNG Association Central Chairman Ghiyas Paracha.

He said it would affect the people employed in the sector. “We have shifted from natural gas to RLNG, which is costly, still gas companies are not providing us interrupted supplies,” he said, adding, “We demand that the supply be restored to all gas stations. We have already written a letter to the Ministry of Petroleum against the SNGPL’s decision.”

Published in The Express Tribune, December 20th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ