Karachi trade bodies, SSGC sign MoU to address gas crisis

• SSGC to ensure full-pressure gas supply in 7 industrial zones in exchange for them not agreeing to use gas for one day of the week. 
• MoU has been signed on a short-term basis. 
• Gas shortfall triggered by recurring maintenance works in fields, delay in LNG imports. 

KARACHI: The Sui Southern Gas Company (SSGC) Wednesday signed a short-term Memorandum of Understanding (MoU) with Karachi's trade associations to avert the gas crisis adversely affecting industrial output, as per a report in The News. 

The SSGC has agreed to a full-pressure gas supply in all seven industrial zones for six days a week, in exchange for the zones agreeing to not use gas for one day of the week. 

“Seven Karachi town associations have signed a memorandum of understanding with SSGC on a short-term basis to address the gas crisis and find a solution to gas shutdown in industries,” Faisal Moiz, President of the North Karachi Association of Trade and Industry, said.

Karachi's industrialists and businessmen have been reeling from the gas crisis, which was caused by the government suspending gas supply to the non-export industrial sector, due to recurring maintenance works in fields. 

There is also a shortfall aggravated by a delay in LNG imports due to the hype over the pricing of the fuel imported in the past.

A day earlier, in a meeting with SAPM on Power Tabish Gauhar, Karachi businessmen had slammed the gas shutdown with the city, the industrial hub, getting 380 million metric cubic feet of gas, only 18% of the total gas supply.

They had said the majority of exporters are devastated by the current crisis and skeptical about meeting orders on time. Economic activities have returned to normal after almost a year of lockdown and partial lockdowns associated with coronavirus infection.

Moiz said the terminals would be repaired from June 29 to July 9 during which industries would not get gas at full pressure.

There is a 170 million cubic feet per day gas shortfall in SSGC’s system due to the annual turnaround of the Kunnar Pasakhi Deep gas field. SSGC continues facing a shortfall of 70mmcfd as the Kunnar Pasakhi Deep gas field turnaround is expected to end after July 9.

Under the agreement, each zone has to observe the gas holiday on its turn. 

“North Karachi industrialists will not run their factories on gas on Thursday due to our turn,” he said. “If any industrial unit violates the agreement, we will not be responsible.”