KARACHI: Industrial sector in Karachi has rejected gas closure notices from Sui Southern Gas Company Limited (SSGCL) for three months during the winter, saying that gas outages will result in massive layoffs and business closures.
“The industries are in a state of shock to receive SSGCL’s notices of gas closure starting from November 15, 2022, to February 28, 2023,” the Karachi Chamber of Commerce and Industry (KCCI) and seven other industrial town associations said in a joint statement on Saturday.
In cooperation with town associations including SAI, KATI, LATI, FBATI, NKATI, SSHAI, and BQATI, who had previously brought up the subject of gas delivery to the government, KCCI claimed to have formed a committee on the gas issue.
Since the government has not made any particular plans to purchase RLNG to inject into the grid, the gas shutdown cannot be proven to be beneficial for the economy, especially this year.
The committee said it was expecting appropriate measures from the government to ensure gas supply to the city’s industries, instead of complete gas outages, which would lead to a huge decline in exports and revenue, closure of industries, and layoffs.
The sectors claimed that they had presented a different proposal to a government-formed committee on gas issues and made proposals to address the impending winter gas shortage. None of them were covered by the notices sent to the industries.
According to KCCI, their committee had suggested to the government that the gas supply be shut off every 12 hours for two days each week during the winter.
According to the statement, discussions were held to shut down 50% of captive power plants, and a proposal for gas load management on a rotational basis was made to ensure that industrial production wasn’t completely stopped.
It continued that they had further suggested closing down captive power plants of the industries having proper power and electricity supply from Karachi-Electric.
It was also discussed that usage of gas shall be closed for CPPs whereas the gas must be ensured for operating the industrial boilers. Besides, other measures of energy conservation should also be adopted, the joint statement said.
“SSGC’s gas closure notices issued are also in utter contrast as it is not mentioned how the company will supply gas to export-oriented industries in winters, which is a priority sector.”
The KCCI and its affiliated seven industrial town groups requested prompt action from Prime Minister Shehbaz Sharif and Chief Minister Sindh Murad Ali Shah in response to the SSGC’s proposed gas curtailment plan.
“If we compare it to Pakistan, Bangladesh has given importance to industry by supplying 961 mmcfd, which is 34% of the total gas being supplied to the industries, while gas delivery to industries in Pakistan is only 18% with a supply of only 721 mmcfd.”
According to KCCI, Karachi’s general industries meet more than 50% of the country’s needs, and its export industries contribute to more than 54% of the country’s exports.
