KARACHI – The Sui Southern Gas Company (SSGC) is providing gas to the Karachi Electric Supply Company (KESC) without an agreement and the latter’s claim of not being provided 276mmcfd gas by the gas utility is baseless, said SSGC Managing Director Dr Faizullah Abbasi.
“Although the SSGC wants to sign a gas sale agreement with the KESC but the power utility wants to do this on its own terms and against the proper procedure of agreements signed between the utility supplier and the consumer,” he said while talking to media persons during a press conference at the SSGC head office on Monday.
“The end-user of gas has to provide a bank guarantee referred to as the gas security deposit that is cash equivalent to three months of gas sale and it translates into quantitative terms to approximately Rs 10 billion, which the KESC is not willing to commit,” said Abbasi.
In order to solve the prevailing crisis, it is important that representatives of the KESC, the SSGC, trade bodies and CNG associations meet at least once a month to assess the situation and collectively devise workable solutions, he said.
Replying to a question, the SSGC MD said to further shore up gas supplies, the company would be able to link up its point of delivery by August 2011 to Sinjhoro Gas Field for receiving 35 to 40mmcfd gas.
