KARACHI, Dec 21: The row between the industrialists and the Sui Southern Gas Company intensifies as both sides put forward conflicting claims about the heating value of the gas supplied by the SSGC to its industrial consumers, Dawn learnt here on Friday.

Talking to Dawn on phone, the chairman of the SITE association of industry, Arshad A. Vohra, presented a long list of complaints against the SSGC.

He said: “Up till June, the SSGC provided us gas from the Sui gas field whose btu-content (better known as the heating value) is considerably high. Then the SSGC started supplying us gas which was a combination of supplies from Pirkoh and Zamzama with lower btu-content. Now we use more gas to get the same tasks done.”

SSGC officials, when contacted, said the government had decided to fix gas tariff for all consumer groups on the basis of heating value. “The previous pricing mechanism was dependent on the volume of gas provided by the SSGC to its consumers.”

The officials said the btu-content of the supply from the Sui gas field was high even by international standards. “Now, the btu-content of the gas from other fields is not as high as that of the Sui gas field. The government will, therefore, shortly switch over to the heating value-based pricing mechanism.”

At present, the gas supply is measured in terms of mmcfd (million cubic feet per day). According to the proposed heating value based pricing mechanism, the gas supply would be measured in terms of mmbtu (million British thermal unit).

Mr Vohra contended that because of the low btu-content of the gas being supplied from different gas fields, the industrialists had to use at least 30 per cent more gas than they had been using previously. “As a result, we have to pay more bills. The SSGC should now pay us compensation.”

The SSGC officials, however, ruled out paying any compensation to the industrialists for using more gas due to the low btu-content of the gas being supplied from different gas fields.

“Let us not forget that currently the agreements that the SSGC has with its consumers are all volume-based. When the government changes the pricing mechanism, the agreements will be accordingly modified. But, at present, the agreements do not take into account the heating value of the gas being supplied to consumers. That is why we are not obliged to pay any compensation whatsoever.”

About the exact btu-content of the gas being supplied by the SSGC to its industrial consumers, Mr Vohra alleged that at present the heating value was around 650btu. “Previously, the gas supply from the Sui gas field was at least 950btu. Such a sharp decrease in the heating value has not only resulted in inflated gas bills but also damaged our equipment.”

The SSGC officials argued that the figures cited by the industrialists were not correct. “The figure that we quote are gross figures while the figures cited the industrialists are net figures. These two figures cannot be compared,” they contended.