SSGC to Reduce Gas Supplies, Industries in Peril

The industrial sector in Sindh and Balochistan is bracing for tough times ahead as the Sui Southern Gas Company (SSGC) plans to reduce gas supplies from 720MMCFD to 500MMCFD over the next five years. This decision comes amidst existing gas shortages that have been disrupting production and growth in these provinces, particularly during winter.

SSGC Managing Director Imran Maniar emphasized the urgent need for tight gas and coal gasification projects to meet the country's gas requirements, citing the lack of new gas reserves and a continuous rise in demand as reasons for the reduced gas availability. Despite efforts to curb transmission losses and theft, Balochistan continues to suffer significant losses, with an annual loss of over Rs24 billion due to gas theft.

Business leaders in the region, including Tufail Ahmed and Faraz Rahman, expressed concerns over the impact of reduced gas supplies on industries. Ahmed highlighted the challenges already faced by the industrial sector, such as low production and negative export growth, exacerbated by recent gas tariff hikes. Rahman noted that high financial costs, including interest rates and utility charges, had strained the sector, making it difficult to compete globally.

The looming reduction in gas supplies by SSGC is expected to further cripple the industrial sector in Sindh and Balochistan, posing a serious threat to its survival and competitiveness in the global market.