The Korangi Association of Trade and Industry (KATI) has warned that factories are being forced to shut down due to persistent gas shortages and low pressure, a crisis that is escalating production costs and threatening economic stability.
In response to the severe operational challenges, Sui Southern Gas Company Limited (SSGC) Chairman Asif Inam reaffirmed the utility's commitment to supplying the industrial sector on a priority basis, acknowledging that sustained industrial activity is vital for the nation's economy.
During a visit to KATI, Mr. Inam attributed the recent supply suspensions to declining pressure at gas fields during the winter and an inability to secure alternative arrangements as anticipated. He announced that SSGC will formulate a comprehensive winter gas load management plan in direct consultation with industry stakeholders to ensure uninterrupted operations in the future.
SSGC's Acting Managing Director, Amin Rajput, detailed the immense pressure on the network, citing the humanitarian obligation to supply Balochistan, where extreme cold has made daily life heavily dependent on gas. He noted that while the bulk of imported RLNG is allocated to Sui Northern, SSGC's access is also constrained in winter.
Mr. Rajput highlighted significant financial and supply-side challenges, including the loss of a consumer base worth approximately Rs100 billion annually after captive power plants, which consumed around 100 MMCFD, exited the system. This is compounded by an eight percent yearly decline in domestic gas production, with new discoveries taking up to two years to be integrated.
Despite the difficulties, the acting MD expressed cautious optimism, stating that the supply situation is expected to improve from February as weather conditions ease. He also cited research indicating that Pakistan may not require RLNG imports after 2031, prompting the government to begin diverting cargoes.
Earlier, KATI President Muhammad Ikram Rajput warned that the shortages had already forced industries to close, increasing reliance on more expensive alternative fuels. He also called on the government to reduce gas tariffs, which he said were suppressing demand.
Industry leaders voiced a range of concerns, with Acting Patron-in-Chief Zubair Chhaya calling for closer consultation to resolve issues. Standing Committee Chairman Ehtishamuddin pointed out that this was the second consecutive week of announced gas shutdowns, severely disrupting production schedules.
The government's official energy statistics were also challenged. Rehan Javed, Vice Chairman of the Standing Committee, disputed claims of a 27 percent increase in energy demand, arguing that data analysis reveals a 12 percent annual decline if captive power consumption is excluded. He proposed better pressure management or partial shutdowns to avoid complete closures.
Zahid Saeed, CEO of KITE, described captive power plants as having become "effectively scrap" due to the erratic supply, questioning the logic of diverting RLNG cargoes amid a domestic shortage. He confirmed the industry's willingness to pay government-notified prices in exchange for a guaranteed, uninterrupted supply.
Concluding the discussion, former KATI President Masood Naqi advocated for a uniform gas pricing policy, immediate resolution of pressure issues, and the rationalisation of tariffs to help curb gas theft and settle outstanding litigation.