The Managing Director of Sui Southern Gas Company (SSGC), Faziullah Abbasi, has threatened to stop gas supply to Karachi Electric Supply Company (KESC) if outstanding gas dues are not cleared without any further delay. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KESC) on Monday, he said that the outstanding gas supply bill has swelled to Rs 25 billion, and the bill for October alone is of Rs 750 million.
"Up till now, we have continued gas supply to KESC, keeping in mind the difficulties which will be faced by the general public owing to non-supply of gas to the power generating units, and their closure", he said. He made it clear that SSGC has no written agreement of gas supply to KESC. Referring to his one to one meeting with KESC Chief Executive Officer Tabish Gouhar, he said that during the meeting he made it clear that gas supply to KESC would be suspended if outstanding bills remained unpaid.
He said that SSGC is facing serious financial problems due to non-payment of dues by KESC and now SSGC has to take loan from various sources to keep it operating. Abbasi further said that SSGC is not supplying gas from its quota to Punjab, neither any dialogues were held with SNGPL on the issue. Referring to complaints of low gas pressure, he said that increase of gas consumption in Balocistan has resulted in reduction of gas pressure.
About LNG project, the SSGC managing director said that the project is in best interest of the country and work on the project has been once again initiated on Chief Justice Action and summary will be sent to ministry of petroleum in next few days.
He agreed to establish a SSGC help desk at KCCI. President of KCCI, Saeed Shaifq said that energy tariff has direct impact on industrial cost of manufacturing. High energy prices have adverse impact on manufactures and products become uncompetitive in local and export markets. Senior vice president of KCCI, Talat Mahmood, suggested that a committee comprising of members of KCCI and SSGC should be formed to look into matters related to SSGC. The managing director agreed to the suggestion.
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