KE signs accord for stable gas supply & repayment of arrears with SSGC

KE signs accord for stable gas supply & repayment of arrears with SSGC

KARACHI, April 23: KE termed the signing of agreement a major achievement in the interest of its consumers. Press release stated that SSGC shall maintain minimum gas supply of 210mmcfd to KE during summer and 130mmcfd in winter. This will help KE to run its efficient generation plants in order to maintain the current scheduled load shedding regime. In return, KE would make monthly payment as per the agreed methodology for settlement of old principle outstanding arrears in addition to the current monthly bills which will strengthen SSGC’s financial situation. Both the entities are of National & Strategic importance serving the biggest metropolis of the country and in the interest of the citizens both SSGC and KE entered in to this agreement.

It is pertinent to mention that at the time off Abraaj Group takeover of KE in 2009, there was no Agreement in place for power purchase with NTDC and fuel and gas supply from PSO and SSGC respectively.

Agreements with NTDC and PSO were already signed and finally KE has succeeded in signing of an Agreement with SSGC which reflected sincere efforts of management to ensure smooth supply of electricity to Karachi, part of interior Sind and Baluchistan.

The agreement was signed by KE’s CEO Nayyer Hussain and SSGC’s MD Zuhair Siddiqui at the SSGC head office. On this occasion, Yousuf Ansari – DMD SSGC, Abdul Malik – CFO SSGC, Moonis Abdullah Alvi and Usama Qureshi from KE were also present.

CEO KE said: “Completion of the agreement would leave positive impact over the power generation capacity of the utility and we always preferred to produce low cost electricity for our consumers. KE and SSGC have kept the advantage of consumers as supreme by achieving this goal”

MD SSGC said: “The signing of agreement between SSGC and KE would help resolve the financial difficulties of the gas utility to great extent. Both the organisations held the public service as their prime aim, and had been making efforts towards this common goal.”

Chairman KE and Partner of The Abraaj Group, Tabish Gauhar congratulated management of both companies and also extended gratitude to SSGC’s board members specially Mr Miftah Ismail.