By Muhammad Mudassar ISLAMABAD, Jun 07 (INP-WealthPK): The Sui Southern Gas Company (SSGC) faced a shortfall of approximately 185 million cubic feet per day (mmcfd) in May 2022. The total gas supply during the month was 975 mmcfd, of which 875 mmcfd originated from indigenous gas and 100 mmcfd originated from RLNG. The total demand was 1,160 mmcfd, an SSGC representative told the Senate Standing Committee on Petroleum. The SSGC is the gas supplier in the provinces of Sindh and Balochistan. For the last six years, LNG has played a significant role in Pakistan's energy sector. The SSGC had supplied approximately 90% of its LNG to the power sector as of May 2022. In the power sector, the largest shortfall is observed, followed by exporters and non-exporters. Due to the conflict between Russia and Ukraine, LNG has become significantly expensive in the international market. Pakistan is already facing a huge trade deficit due to increased imports. On the other hand, the SSGC has the largest consumer base of indigenous gas in the domestic sector with a supply of 40 mmcfd. The energy sector also plays an important role directly and indirectly in the industrial sector. Chairman of the Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) Zubair Motiwala told the Senate committee that exporters have an agreement with the SSGC for eight-pound gas which the SSGC is not supplying. To fulfil the export commitment, a few export industries have installed gas pumps. The SSGC is charging export-oriented industries around $15 per mmbtu but the SNGPL is charging around $6.5 per mmbtu. Due to these higher prices, he said, the industry of Karachi is unable to compete in the international market. Pakistan’s industry is paying for cross-subsidy. Subsidies should be given to other industries like cement and fertilizer. Motiwala emphasised that the monopoly of SSGC should end to provide a competitive environment for industries. He said the government must ensure the supply of gas to industries. Industries ensure the hike in production that leads to an increase in the country’s export. Export helps stimulate domestic economic activity by creating employment, production, and revenues. It also helps to combat the balance of payment (BoP) issue. The SSGC has a total of 15.5% unaccounted for gas (UFG) losses which can be classified into two categories: technical and non-technical. Technical losses include above and under-ground leakages (comprising 35% of UFG). Non-technical losses include theft (approx. 30%), measurement errors (20%), and billing errors (15%). Being an agricultural country with a large number of milk-producing animals, there is a prodigious potential to produce biogas from the animal waste.