KARACHI, Feb 7: Sui Southern Gas Company will supply 45 million cubic feet of gas (mmcf) per day of piped natural gas to Tuwairqi Steel Mills Limited for 10 years with the option to extend the arrangement for another 10 years.

The two companies initialled a document in this regard here on Tuesday at the SSGC head office, listing out the negotiated heads of terms which would form the basis for a formal head of the terms (HOT) and general sales agreement (GSA) for gas supply.

The formal HOT/GSA will be signed after these are cleared by the SSGC board of directors and the Oil and Gas Regulatory Authority (Ogra). The gas would be used primarily as fuel, for a directly reduced iron (DRI) plant, with a capacity to produce one million tons of billets per annum.

Director Projects Zaigham Adil Rizvi initialled the document on behalf of Tuwairqi Steel and Managing Director Munawar Baseer Ahmad on behalf of SSGC.—APP