Engro Polymer and Chemicals inks gas supply deal with SSGC

Engro Polymer and Chemicals Limited (EPCL), a subsidiary of Engro Corporation, said on Wednesday it has entered into an interim agreement with Sui Southern Gas Company Limited (SSGC) for the supply of gas till February 29, 2024.

The company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

The company said that the gas will be used by the company on an “as and when” available basis. “This will ensure that the company’s operations continue unhindered,” it added.

Back in September, EPCL had extended its gas supply arrangement with SSGC till mid-October.

At the time, the company had said that the gas would be used for EPCL’s captive power generation plant located at Port Qasim Industrial Zone in Karachi.

As per its latest financial report, the company recorded a revenue of Rs25.016 billion in 3Q 2023, an increase of roughly 48% compared to the same period last year, mainly on the back of higher volumetric sales.

The company back then had highlighted that it faces significant challenges in ensuring gas availability towards the end of the year, which may impact its business.

EPCL is a manufacturer of Poly Vinyl Chloride, Vinyl Chloride Monomer, caustic soda and other related chemicals. The company is also engaged in the supply of surplus power generated from its power plants to Engro Fertilizers Limited.