KARACHI, June 24: The Sui Southern Gas Company (SSGC) on Friday signed an agreement with ENI Pakistan Ltd., the operator of Bhit and Badhra gas fields in Dadu district, for additional supply of 30 mmcfd of gas.

The new term sheet of Bhit gas sales agreement (GSA) was signed by SSGC Managing Director Munawar Baseer Ahmad and ENI Pakistan MD Phil Hemmens, at SSGC head office, on behalf of their joint venture partners Kirthar Pakistan BV (a Royal Dutch/Shell company), Premier Kufpec Pakistan and OGDCL.

The original Bhit GSA was signed in November 2000 under which 270mmcfd of gas was already being supplied to the SSGC. With the development of the Bhit/Badhra gas fields, the total volume now available to SSGC for sale would increase from 270mmcfd to 300mmcfd by mid of 2007.

Speaking at the signing ceremony, Phil Hemmens pointed out that the ENI Pakistan was now supplying nearly a third of the volume of gas distributed by SSGC in Sindh and Balochistan. He added that that the reserves forecast in Badhra and Bhit fully back up the supply of gas committed under the GSA.

The SSGC chief said that this new arrangement was a significant development in the context that it added to the indigenous supply of gas, when alternative sources of supply were being explored by the company. “The supply of gas from the ENI has helped us maintain supplies to power plants which consume 300mmcfd of gas,” he added.

He pointed out that this new addition was a part of SSGC’s five-year Rs42 billion strategic business plan initiative aimed at meeting the requirements of gas in the company’s franchise areas.