ISLAMABAD: The Senate Standing Committee on Petroleum was apprised on Wednesday that the gas production in Sui Southern Gas Company (SSGC) has declined from 1,100 mmcfd to 750 mmcfd, which is not enough to meet the demand in franchise area of the company.

The Senate Standing Committee on Petroleum, under the chairmanship of Senator Abdul Qadir, convened a meeting to discuss a range of pressing energy matters.

The SSGC provided insights into the ongoing supply of Natural Gas to Fauji Fertilizer Bin Qasim Limited (FFBL). The MD SSGC informed the committee about the allocated 45mmcfd natural gas and 10mmcfd RLNG provided to FFBL against the demand of 68 mmcfd, stressing that these allocations are the maximum feasible.

The SSGC said their resources are quickly depleted owing to the downward trajectory of gas production reduced from 1,100 mmcfd to 750 mmcfd at present. The FFBL representatives shared their operational struggles due to these limitations, citing substantial financial losses amounting to Rs5 billion in the first two quarters being the sole manufacturer of DAP in Pakistan.

If Pakistan imports Urea/ DAP then national exchequer will suffer an accumulative loss of $1-1.5 billion a year, they said.

In a pivotal move, the committee resolved to call representatives from gas-consuming industries and fertiliser companies in the forthcoming meeting, to devise collaborative solutions that address the evolving energy landscape.

The issue of gas supply irregularities in various areas of Karachi also came under the committee’s scrutiny. The SSGC revealed that substantial progress has been made, with 0.1 million meters already installed and plans to bring 0.4 million more houses under the metering system by June 2024.

The committee directed the immediate installation of meters for households utilising gas without meters, or else discontinuing their gas connection.

Copyright Business Recorder, 2023