The Sui Southern Gas Company (SSGC) is grappling with a severe gas supply crisis in Pakistan, primarily affecting residents in Karachi and surrounding areas. This crisis has resulted in a complete suspension of regasified liquefied natural gas (RLNG) supply, leaving Karachi residents with gas availability for only about 10 hours a day.

One of the critical factors contributing to this situation is the outstanding payment issue between SSGC and United Energy Pakistan. China has urged Pakistan to clear $220 million in overdue payments owed to United Energy Pakistan, which has a significant impact on gas supply levels. Currently, SSGC receives approximately 260–270 million cubic feet of gas per day from United Energy Pakistan.

The ongoing gas crisis has also led to a sharp increase in liquefied petroleum gas (LPG) prices, which have risen to between Rs460 and Rs480 per kilogram. This price surge is a direct consequence of the reduced gas supply, forcing many residents to seek alternative energy sources.

In response to the crisis, SSGC has initiated repair work on a gas pipeline that was damaged in a blast in Akhtarabad, aiming to restore normal supply levels. Additionally, the company has diverted gas through an alternate pipeline to maintain supply to Quetta city and its surrounding areas.

However, the financial strain on SSGC is evident, as the company has implemented cost-cutting measures, including staff reductions, due to liquidity constraints. These measures may further complicate the company’s ability to manage the ongoing gas supply issues effectively.

Details remain unconfirmed regarding the exact timeline for resolving the payment issue between SSGC and United Energy Pakistan. Furthermore, the long-term impact of the gas crisis on domestic consumers and the energy sector remains uncertain.