KARACHI: Reacting to comments made by K-Electric CEO Moonis Alvi during a press conference on Wednesday, a spokesman for the Sui Southern Gas Company (SSGC) has questioned the assertions of the power utility.

It was stated that “SSGC reiterates, as it has many times in the past that it has always shown utmost seriousness in ironing out contentious issues with KE including the signing of a valid GSA [gas supply agreement] with the power company, even though over dues KE owes to the gas utility has now crossed Rs122 billion, and not Rs13.7 billion as CEO KE asserts.”

SSGC has always maintained that the issue of growing “over dues” needs to be sorted out before the company inks a fresh GSA with KE. SSGC maintains that contrary to CEO KE’s assertion, the main reason behind lack of progress in signing GSA has always been due to KE’s reluctance to abide by 2018 decision of then Cabinet Committee on Energy (CCOE) wherein the CCOE directed for the finalization and signing of terms of reference (TORs) for the settlement of dues between SSGC, KE and Karachi Water and Sewerage Board that has been pending for way too long.

Moreover, SSGC is keen to augment the infrastructure to facilitate KE’s new Bin Qasim Power Complex simply because it wants to address the sufferings of the people of Karachi.

Despite the fact that the only GSA between the two utilities is of 10mmcfd, SSGC has always provided much more gas to KE than the GSA allocated amount to avert power outages in Karachi.

While currently SSGC is providing on average 70mmcfd gas to KE, last summer it provided 270mmcfd plus gas to the power company due to greater gas when KE failed to arrange alternative fuels for power generation. Backing away from its commitment to serve the people of Karachi does not figure in SSGC’s scheme of things. KE on the other hand needs to show greater flexibility in sorting out contentious issues with SSGC including that of a new GSA, the statement concludes.

Published in Dawn, January 22nd, 2021