Pakistan Today

Outstanding dues: KESC fails to honour its commitment

Despite repeated promises and claims, KESC has not made any outstanding payments to SSGC since August 2011. As a result, SSGC’s receivables have ballooned to Rs32 billion, as of November 17, 2011. This alarming situation is forcing SSGC to substantially curtail gas supplies to KESC. Even without any Gas Sales Agreement (GSA) with KESC, SSGC has not cut off gas supplies to the former only because it does not want Karachi to suffer prolonged power outages. In fact, in the month of Ramadan this year, gas utility increased supply to 200 mmcfd. It must be mentioned that SSGC purchases gas from local and foreign E&P companies.

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