KESC pays Rs7b to SSGC in three months

KARACHI: Karachi Electric Supply Company (KESC) said on Thursday that it has paid Rs7.1 billion to Sui Southern Gas Company (SSGC) during the last three months.

Since September 2008, the power company has paid Rs52 billion to SSGC against purchases worth Rs56 billion, KESC said in a press release.

KESC said that it is regularly paying its dues to SSGC and wants to expedite the process of Gas Supply Agreement between the two companies.

“KESC is willing to sign a Gas Supply Agreement (GSA) with SSGC and has made a concerted effort to expedite GSA negotiations. GSA signing is in KESC’s best interests as it will stabilise the company’s gas supply,” it said.

KESC said that at present, SSGC is supplying approximately 210 million cubic feet per day (mmcfd) of gas versus an allocation of 276 mmcfd. Coupled with the declining gas supply, KESC’s working capital is severely strained as dues from the government and related sovereign entities including ‘strategic customers’ and various federal and provincial bodies have accumulated to Rs44 billion. In addition, nearly Rs30 billion is outstanding in receivables from the general public.

Notwithstanding the non-payment, KESC said that it has been making payments to National Transmission and Dispatch Company (NTDC), SSGC, PSO and IPPs.

Published in The Express Tribune, August 20^th, 2010.