Sindh likely to face 350mmcfd gas shortage in winter – Alfalah Securities Limited

Karachi: Sindh is likely to face a severe gas shortfall of 350 mmcfd in the upcoming winter season on account of a growing demand and continuous depletion of gas reserves which has led the demand-supply gap to increase significantly.

According to Alfalah Securities, the Sui Southern Gas Company (SSGC) has informed that the company is being currently supplied with 1,100 mmcfd gas against a demand of 1,400 mmcfd. The depletion of gas reserves is also evident from the fact that the company was receiving a supply of 1,200 mmcfd gas couple of years back which has now dropped to 1,100 mmcfd. The Managing Director of SSGC has stated that the demand of gas in the peak winter season would rise to 1,500 mmcfd while the supply of gas would increase to a meagre 1,150 mmcfd thus, a shortfall of 350 mmcfd would be witnessed which would be entirely felt by the Sindh province. Moreover, SSGC is also determined that the supply of gas would recover in future owing to commissioning of several gas fields which would fill the mounting demand-supply gap. SSGC would get an additional 100 mmcfd gas from the Kunar-Pasaki project, while addition of 25-30 mmcfd from Sinjhoro gas field and 50 mmcfd from OMV’s Latif gas field would also improve the situation by the spring of next year.

While addressing the issue of gas shortage in winter, SSGC has also informed that Engro’s new fertilizer plant (ENVEN 1.3) would receive gas supplies from SSGC through diverting 50% of the KESC’s allocated gas supply to their fertilizer plant while the remaining 50% would be supplied by SNGPL in order to ensure urea availability in the Rabi season.

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