Sui Southern Gas Company (SSGC) has denied Pakistan Steel Mills' (PSM) allegations and clarified that as on July 8, PSM has an outstanding balance of over Rs 34 billion with SSGC which is growing every month due to continuous default by the mill. PSM has defaulted on its payment commitments repeatedly and has not presented any palatable payment plan for the settlement of large overdue balances. The last partial payment received from PSM was in March 2015, SSGC said.
Despite the fact that PSM has been persistently defaulting on its payments, SSGC has been accommodating PSM and even today supplying it with 10mmcfd gas in order to keep its operations going. However, if PSM continues to default on its payments, its action will have a major impact on the financial health of SSGC, forcing the derailment of its capital expenditure projects which are for the national interest. SSGC is accountable to its Board of Directors and has the right to take remedial measures to protect the interest of the Company, it said.-PR
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