- Provide to be stopped for 3 months beginning Dec 5.
- SSGC faces extreme deficit in fuel provide.
- Govt’s coverage prioritises fuel for home sector: SSGC.
ISLAMABAD: Sui Southern Fuel Firm (SSGC) stated that it’s going to halt provide to gas-based energy vegetation amid a big scarcity for the home sector and heightened demand in winter, particularly in Balochistan, The Information reported Sunday.
In line with an announcement, the utility knowledgeable energy vegetation it was invoking a clause within the fuel sale settlement that enables it to disconnect provide, including that the provision will probably be halted for 3 months beginning December 5.
“The federal authorities’s coverage prioritises fuel provides to the home sector,” it stated.
SSGC is going through a extreme deficit in fuel provides, which have declined by greater than 39% prior to now six years, from 1,200 million cubic ft of fuel per day (MMCFD) in fiscal 12 months 2018 to 730 MMCFD in fiscal 12 months 2024.
The development of diminishing fuel provides is obvious when analyzing the info for the previous fiscal years. In FY19, the fuel provides to SSGC have been recorded at 1,164 MMCFD, adopted by FY20 with 1,087 MMCFD, FY21 with 984 MMCFD, FY22 with 921 MMCFD, and FY23 with 847 MMCFD.
The downward trajectory persists, with the newest figures for FY24 reflecting an extra discount to 730 MMCFD. This declining development raises issues concerning the sustainability and adequacy of home fuel sources to fulfill the rising calls for and necessities of varied sectors.
Owing to the shortage of indigenous fuel within the system, the provision of fuel beneath the ‘contract for the provision of fuel for energy technology’ is ready to be quickly halted. This suspension is scheduled to happen from December 5, 2023, to February 29, 2024, following clause I of the contract for the provision of fuel for energy technology (GSA). The cessation of fuel provide throughout this era has been mutually agreed upon by the concerned events.
The contract states, “Fuel provide will probably be supplied by the corporate on an ‘as and when obtainable’ foundation solely through the interval from March to November annually. The customers will make twin fixing preparations to keep away from lack of manufacturing as and when fuel is just not obtainable throughout March to November and in addition throughout December to February when the corporate will maintain the customers’ fuel provide disconnected at his price, annually.”
SSGC additional conveyed that the phrases and circumstances outlined within the GSA between the events explicitly affirm the corporate’s proper and authorisation to droop the provision from December to February yearly.
Consequently, in response to the acute scarcity and unavailability of fuel within the system to fulfill the calls for of home customers, SSGC is implementing the curtailment of fuel provide efficient from December 5, 2023. This motion is being undertaken following the provisions stipulated in clause I of the GSA.