Karachi: The Sui Southern Gas Company (SSGC) Saturday said gas of exports or non-export industrial units would not be disconnected unless the relevant distribution companies (DISCOs) or K-Electric confirm in writing their technical ability to serve the sanctioned power load.
The company said there are two categories of industrial customers having contracts with SSGC for Power Generation (Export/Non-Export).
It said: “In light of a recent announcement by the federal government with regards to a Moratorium on supply of gas to industrial units for self-generation of electricity, it is hereby clarified that these two categories include, firstly, those industrial units having electricity connections less than their requirement and, secondly, those industrial units having no electricity connection.”
The company further said that all such captive power plants shall apply for load with enhancement/grid connectivity to relevant DISCO/K-Electric in compliance with the directions of Federal Cabinet.
In this connection, Sindh Industrial Liaison Committee Meeting was held under the chairmanship of Governor Sindh Imran Ismail on energy issues confronting the industries, on Saturday evening at Sindh Governor House, Karachi. Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar and Special Assistant to Prime Minister (SAPM) on Power Tabish Gauhar were also present at the meeting.
The industrialists in the meeting expressed severe concern on the recent announcement of the Federal Government regarding discontinuation of gas to the industrial captive power plants, and termed the said announcement at that juncture of time as a “bomb blast.”
Foreign buyers from across the globe have become doubtful and have approached the exporters in Pakistan enquiring about their deliveries, in the wake of the government’s announcement which has been depicted as an energy crisis in the eyes of global buyers worldwide.
The relevant emails were presented and discussed wherein the foreign buyers enquired that since the government has announced discontinuation of gas, how will the Pakistani exporters will complete export orders?
“The buyers have also communicated that since there will be no gas and orders cannot be completed, therefore, they are thinking to divert the export orders given to Pakistani exporters to other countries,” the industrialist informed the governor.
The Industrialists delegation informed that the government’s announcement has created great uncertainty and unrest to buyers of US and EU.
The government’s side responded that it was a misunderstanding and the government has never intended to close down any industrial unit whatsoever. Such action shall be taken only when industrial unit shall be provided alternate energy solution as per their requirement. In case of any shortfall and variance in availability of electricity and the power consumption of the industry concerned, whether manufacturer or exporter, the gas would not be disconnected and shall be provided continuously till the time a policy framework is chalked out.
Further, there is an understanding with the K-Electric in case of Karachi, and Water and Power Development Authority (WAPDA) elsewhere in Pakistan, that they both would come up and certify to supply uninterrupted and quality power to industries who are generating their own electricity through gas, and K-Electric will install all necessary infrastructure for expanding transmission and distribution to the doorsteps of the industries. Moreover, unless the K-Electric certifies that the Company is ready to supply electricity to the respective industries, the gas of industries will not be disconnected.
The government’s side further informed that this process is not abrupt and the dates announced for February 1, 2021 and March 1, 2021 were hypothetical, and the same should not be construed as final dates.
Tabish Gauhar categorically informed that the process shall be executed gradually. In this connection, the industrialists asked several questions which were thoroughly discussed and answered by Tabish Gauhar and Nadeem Babar. The industrialists discussed the enhancement of gas prices from Rs 786 to Rs 930, which was confirmed.
The industrial delegation demanded restoration of gas connections of 118 industries which were disconnected by SSGCL, whereby SAPM Nadeem Babar gave instant orders to MD SSGCL to restore the gas connections forthwith. SSGC was instructed to immediately restore the gas to industrial units having no other source of energy; for those industries having 500 kw electricity connection that required a load of 1000 kw, gas shall be supplied to generate 500 kw electricity.
Tabish Gauhar said that the government shall take all the guarantees with regards to K-Electric, and industries shall not be disturbed at all.
The delegation from industries of Sindh was comprised of Muhammad Zubair Motiwala, Chairman BMG and former President KCCI, accompanied by Ismail Suttar, Former Vice President FPCCI; Muhammad Jawed Bilwani Chief, Coordinator Karachi Industrial Forum; Asif Inam, former Chairman APTMA; Presidents Seven Industrial Town Associations; Abdul Hadi, President SITE; Muhammad Ali, President FBATI; Nisar Ahmed Khan, President SSHAI; Saleem Uz Zaman, President KATI; Faisal Moiz, President NKATI; Ajmal Afzal, President LATI; Mian Muhammad Ahmed, Patron in Chief BQATI; and Zahid Saeed, Coordinator Sindh Industrial Liaison Committee.