Karachi Electric Supply Co at the brink of gas closure

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KARACHI: The Sui Southern Gas Company (SSGC) Limited has warned the Karachi Electric Supply Corporation (KESC) that supply of gas would be suspended if the power utility did not clear its outstanding dues within 30 days, Pakistan Today has reliably learnt. The payable amount is at least Rs 22 billion.
The SSGC Managing Director Dr Faizullah Abbasi had personally approached the Chief Executive Officer (CEO) of the KESC Tabish Gauhar to try and resolve the issue amicably. However, the KESC management did not respond positively, compelling the SSGC to warn the utility regarding disconnection of gas supply, sources added. Sources stated that the KESC was being provided with at least 180mcft of gas daily which had made uninterrupted supply of gas difficult for the SSGC.
The KESC had reached an understanding with the gas utility in June 2009 that it would pay all current bills without any delay. Besides, it also agreed to pay outstanding dues worth Rs 22 billion in 24 installments each of Rs 500 million towards back arrears. However, this understanding was yet to be materialised, sources further informed.
Sources disclosed that the KESC would face a shortfall in excess of 150MW if the SSGC suspended supply of natural gas to the power utility. People of the metropolis would have to bear the brunt if the KESC did not make any progress in clearing its dues, they said.
Talking to Pakistan Today, a spokesman of the SSGC confirmed that the Managing Director of the utility had warned the KESC to pay the dues within 30 days. However, he was unaware of further development as he was currently in Khairpur Nathan Shah of district Dadu for an official work.