March 31, 2006	Friday	Rabi-ul-Awwal 1, 1427

KARACHI, March 30: Sui Southern Gas Company (SSGC) has signed the head of terms (HOT) with Tuwairqi Steel Mills Limited which will lead to a general sales agreement (GSA) between the two companies for the supply of natural gas over a period of 10 years.

According to SSGC here Thursday, the GSA could be extend for another 10 years.

SSGC Managing Director Munawar B. Ahmad and Al-Tuwairqi Group of Companies Chairman Dr Hilal Hussain Tuwairqi inked the accord. Group vice-chairman Mohammad Tariq Barlas and Tuwairqi Steel Mills project director Zaigham Adil Rizvi were also present.

The HOT signed was first cleared by the respective boards and the Ogra. The agreement provides for the supply of 45mmcfd of natural gas from SSGC to Tuwairqi Steel Mills over a period of 10 years, with the option to extend the arrangement for another 10 years.

Only 5mmcfd 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 said: “We are also delighted that Tuwairqi Steel is using new technology to use natural gas in an efficient manner adding greater value to their product.”—APP