SSGC announces gas cut for captive power during winter months

Sui Southern Gas Company (SSGC) has announced a 50% reduction in gas supply for captive power generation during the winter months, citing a severe deficit in gas reserves.

The curtailment, effective from January 1 to January 31, 2025, is due to the depletion of existing gas reserves, as outlined in a notice issued by the company.

The gas supply for captive power generation will be curtailed by 50% of the approved sanctioned load for the specified period.

This decision follows the Ministry of Energy’s priority order, which mandates that domestic sector gas demand, especially in Balochistan, be fulfilled on priority during the winter season.

SSGC highlights the declining gas supply over the years, with figures showing a drop from 1,200 MMCFD in 2017-18 to an estimated 690 MMCFD in 2024-25.

The contract for the supply of gas for power generation explicitly states that gas will be provided on an “as and when available” basis during the period from March to November each year.

The government has agreed with the IMF to stop using gas-based captive power generation by January 2025. The goal is to connect these captive power plants (CPPs) to the national grid and increase gas prices to match the price of re-gasified liquefied natural gas (RLNG).

Connecting CPPs to the grid is expected to lower electricity costs for everyone by spreading the fixed capacity charges over more units of electricity.

Around 350 million cubic feet per day (mmcfd) of local gas and 150 mmcfd of RLNG is allocated for captive and industrial consumers. Industries in the South receive about 150 mmcfd of this local gas.

There are a total of 1,180 CPPs, with 797 in the Sui Southern network. These CPPs use around 2,150 megawatts (MW) of electricity from local gas and RLNG.