K-Electric offers its stance on receiving gas sans sales agreement

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KARACHI: Spokesperson of K-Electric has offered company stance on a private TV’s channel report that PTI government provided Rs 173.74 billion worth of gas to electricity company without signing sales agreement with it. TV had cited a report by Auditor General of Pakistan. K-Electric spokesperson in a statement said that company made complete payment for gas mentioned in Auditor General’s report.
“Payment to supply of gas referred in report of Auditor General has already been made by KE,” spokesperson said. K-Electric is in constant contact with Sui Southern Gas Company (SSGC) officials for a gas sales agreement (GSA), but due to a dispute on markup no progress has been made on part of SSGC, spokesperson said in statement. “Matters pertaining to GSA have remained pending for more than a decade,” KE official said. “Resolution of dispute between SSGC and K-Electric regarding markup and other government payables through an arbitration also remains under consideration for years.”
KE is being supplied gas in line with decisions by Cabinet Committee on Energy and court so that utility can keep supplying power to people. “According to CCoE and high court decision, K Electric was supposed to receive 130 MMCFD of natural gas and 60 MMCFD of RLNG. However, KE is being supplied with considerably less amount of indigenous gas,” official argued.
Published in The Daily National Courier, September, 15 2022
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