Sui Southern Gas Company (SSGC) has reduced its gas supply to Karachi Electric Supply Company (KESC) by 60mmcfd, ie from 180mmcfd to 120mmcfd. According to a press release issued here on Thursday, 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 percent 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&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 60mmcfd 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 ensuring that Karachiites get uninterrupted power supply yet KESC's inability to settle its dues with SSGC has forced it to curtail the gas supplies.-PR
Comments
Comments are closed for this article.