Businessmen demand uninterrupted gas supply

Express concern over suspension of supply for three days

Businessmen in the country’s economic hub have expressed deep concern over the three-day suspension of gas supply to industries by Sui Southern Gas Company (SSGC) and have demanded uninterrupted gas supply.

In a bid to overcome the ongoing power load-shedding, SSGC had announced that it would halt gas supply for three days to industrial consumers, captive power plants and compressed natural gas (CNG) stations. The move may prove detrimental to the industries already in deep crisis and on the verge of collapse due to the impact of the lockdown imposed since March 2020, said Karachi Chamber of Commerce and Industry (KCCI) President Agha Shahab Ahmed Khan.

He pointed out that the government had always reiterated its resolve to provide uninterrupted electricity and gas supply to the five major export-oriented sectors, which had around 1,300 to 1,500 industries. “But what about the remaining 14,500 industries, out of the total of 16,000 industries in Karachi, which continue to remain deprived as no relief has ever been given despite being taxpayers.”

He said instead of providing relief to all the industries in the ongoing difficult situation, the Economic Coordination Committee (ECC) recently approved a tariff hike of Rs2.89 per unit for K-Electric, which would further increase the hardships as the business community was being forced to face gas load-shedding for three days.

KCCI’s former president Siraj Kassam Teli said SSGC’s load-shedding schedule for industrial consumers and CNG stations was unjust and anti-business, which would completely destroy the industries already going through the toughest time and struggling for survival amid the coronavirus pandemic.

Also rejecting the SSGC decision, SITE Association of Industry President Suleman Chawla said, “This is not in the interest of national economy as the suspension of core utilities like electricity and gas has a direct impact on production, which will ultimately result in lower exports from Pakistan.”

North Karachi Association of Trade and Industry (NKATI) Patron-in-Chief Moiz Khan said the government must know that due to power load-shedding for the industries, the production activities had already been hampered.

In such a situation, shutting down gas supply would completely stop the production process, which would have a very negative impact on the country’s exports, he said.

“Although SSGC has scheduled gas load-shedding for the captive power plants and CNG fuel stations on the directive of the government, there has not been gas load-shedding of a single mmfcd for the industry,” said gas company official. “It’s a misunderstanding that there will be gas load-shedding for the industry.”

He said on average Karachi’s demand for gas stood at 750 to 800 million cubic feet per day (mmcfd), which was met.

However, the official said, K-Electric’s demand for gas was 280-290 mmcfd, which was facing a shortage of 40 mmcfd, that SSGC had to provide by curtailing supply to CNG fuel stations and captive power plants for three days.

Published in The Express Tribune, July 11^th, 2020.

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