Sui Southern Gas Company (SSGC) has inked the Head of Terms (HoT) with Tuwairqi Steel Mills Limited. The HoT would lead to a General Sales Agreement (GSA) between the two companies, for the supply of natural gas for a 10-year period, with the option to extend the arrangement for the same period.
In a statement issued here on Thursday, Managing Director of SSGC Munawar Baseer Ahmad and Dr Helal Hussain, Chairman Al-Tuwairqi Group of Companies signed the HoT on Wednesday from their respective organisations.
The HoT that has been signed was first cleared by the respective Boards and the Oil & Gas Regulatory Authority (OGRA).
The HoT provides for the supply of 45-mmcfd of piped natural gas from the gas utility (SSGC) to Tuwairqi Steel Mills, over a period of 10 years, with the option to extend the arrangement for another same period. Only 5-mmcfd of natural gas will be used as fuel, whereas the remaining will be used in the processing of iron ore, using an advanced Direct Reduced Iron (DRI) technology for the production of steel billets.
Speaking on the occasion, Munawar Baseer Ahmad said, "We are pleased to have initiated this long-term agreement. We are also delighted that Tuwairqi Steel are using new technology to use natural gas in an efficient manner adding greater value to their product."
The company supplies over 1bcfd of natural gas, to more than 1.8 million domestic customers as well as 2,800 industrial and 19,000 commercial establishments located in 6 large cities and over 100 smaller towns and 930 villages in its franchise areas. Mohammad Tariq Barlas, Vice-Chairman and Zaigham Rizvi, Project Director Tuwairqi Steel Mills and SSGC Senior General Managers Azim Iqbal Siddiqui, Babar Ghaznavi and Aqeel Nasir, Company Secretary also witnessed the ceremony.-PR