PSO, KESC ink 10- year deal

KARACHI: Pakistan State Oil and Karachi Electric Supply Corporation have signed a 10- year fuel supply agreement.

According to the agreement, the PSO will supply up to 33,000 tons of furnace oil to KESC every month under new commercial terms, PSO announced. PSO Managing Director Irfan K. Qureshi and KESC’s CEO Tabish Gauhar signed the FSA on behalf of their respective organisations. Gauhar said that the landmark agreement would ensure a smooth supply of furnace oil to the power utility and hopes to enter into a similar agreement with the Sui Southern Gas Corporation soon.

Qureshi said the agreement would streamline KESC’s fuel supply. PSO was mandated by the government to supply fuel to KESC on concession, a practice that continued until PSO suddenly stopped supplying provisions. As a result, KESC shut down their oil-run power generators, which caused a power crisis in Karachi last year.