Pakistan Steel Mills on Tuesday warned that the country's largest steel producing plant is at high risk of damage due to reduced gas pressure by Sui Southern Gas Company (SSGC). According to Shazim Akhtar, spokesman for the PSM, the SSGC on 10th June reduced the gas pressure which severely affected the production of Pakistan Steel, coming down to 0 percent CAPU.
During March and April 2015 when the production was at its peak, the gas pressure was suddenly reduced bringing the production from 65 percent CAPU to a very low level. "We are unable to understand as why this treatment is being meted out right now when the pant is in production and performing well compared to previous years," he added.
He said that the SSGC reduced gas pressure at that time when a closed plant reached an average of 30 percent (CAPU) production during last six to eight months, and reaching as high as 65 percent production (CAPU) in March, 2015 with the government's Bailout Package Rs 18 billion. For the second time this year, the SSGC reduced gas pressure as previously in January, 2015 when 50 percent production was achieved and gas pressure was reduced and production was affected.
"Lower gas pressure is being used as a 'tool' to prevent Pakistan Steel to achieve higher production capacity targets and help importers flood Pakistani market with imported steel depriving the country of this asset of great technological value essential to make Pakistan stronger and more prosperous especially when its quality products will be required in Pak-China Economic Corridor projects," the spokesman observed.
He said that despite hectic meetings were held and in the presence of Zubair Ahmed, Chairman Privatisation Commission, Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources, Miftah Ismail, Chairman BoI, Major General Zaheer Ahmed Khan (R), Chief Executive Officer, Pakistan Steel, it was agreed to pay the current gas bill from next month and the restoration of gas pressure would immediately be restored on 6th July, 2015, however, the SSGC has failed to do so.
"This attitude of the SSGC has put Pakistan Steel's Blast Furnaces, Brick/Lime Kilns and Power Plant Boilers at the huge risk of damage which will cause irreparable loss and put the plant out of operation for years," he added. The Pakistan Steel management has requested the federal government, especially honourable Finance Minister Ishaq Dar to intervene and help in resolving the issue. K-Electric, a private company, is defaulter of Rs 55 billion but it has never been deprived of gas by the SSGC. Why this treatment to a government entity is being meted out because it has no 'ownership' at higher level, he questioned.
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