Sui Southern Gas Company curtails gas supplies as last resort measure Southern Gas Company

Karachi: Sui Southern Gas Company (SSGC) has reduced its gas supply to KESC by 60 mmcfd, i.e. from 180 mmcfd to 120 mmcfd. The gas utility was compelled to take this step because its total outstanding with KESC have swelled to above Rs. 28 billion. While last month, KESC paid 50% of its current bill, this month it has not made any further payments to SSGC although the due date was July 20, 2011.

KESC paid its full current bill till November 2010. As a result of this sordid state of affairs, SSGC is faced with severe financial crunch as its management is unable to pay salaries to its employees as well as settle its obligations with E and P companies.

SSGC categorically dispels the impression created in the media that it has totally cut off its gas supplies to KESC. It has only reduced it by 60 mmcfd due to KESC incapacity to settle dues with the gas utility.

This worsening receivables position has threatened SSGC’s very survival unless KESC starts paying up its dues on a regular and consistent basis. SSGC is committed to ensure that Karachiites get uninterrupted power supply yet KESC’s inability to settle its dues with SSGC has forced it to curtail the gas supplies.

For more information, contact:
Inayatullah Ismail
Deputy Chief Manager
Corporate Communication Department (Media Relations)
Sui Southern Gas Company (SSGC)
Tel: +9221 9902 1773
Cell: +92322 222 5159
Fax: +9221 9923 1662