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

Spokesperson says markup dispute delayed the agreement though they made complete payment

A spokesperson of the K-Electric has offered the company stance on a SAMAA TV’s report that the PTI government supplied Rs173.74 billion worth of gas to the electricity company without signing a sales agreement with it.

The TV had cited a report by the auditor general of Pakistan.

The K-Electric spokesperson in a statement on Wednesday said that the company made complete payment for the gas mentioned in the auditor general’s report.

“Payment to the supply of gas referred in the report of Auditor General has already been made by KE,” the spokesperson said.

K-Electric is in constant contact with the Sui Southern Gas Company (SSGC) officials for a gas sales agreement (GSA), but due to a dispute on the markup no progress has been made on the part of SSGC, the spokesperson said in the statement.

“Matters pertaining to GSA have remained pending for more than a decade,” the KE official said. “Resolution of the dispute between SSGC and K-Electric regarding markup and other government payables through an arbitration also remains under consideration for years.”

Read: Audit reveals PTI govt supplied Rs173.7b worth of gas to Naqvi’s K-Electric

At the moment, the official said, KE is being supplied gas in line with the decisions by Cabinet Committee on Energy (CCoE) and the court so that the utility can keep supplying power to the people.

“According to the 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,” the official argued.


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