Karachi, July 08, 2015 (PPI-OT): This refers to the news items appearing in sections of the press which relates to Pakistan Steel Mills (PSM) assertion about reduced gas pressure which the latter alleges is badly hampering its production. SSGC emphatically denies the assertion carried in the news reports and would like to state the facts as under:
As of today, PSM has an outstanding balance of over Rs. 34 billion with SSGC which is growing every month due to continuous default by PSM. 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.
Despite the fact that PSM has been persistently defaulting on its payments, SSGC has been accommodating PSM and even today supplying it with 10 MMCFD 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.
For more information, contact:
Chief Manager (Media Relations)
Sui Southern Gas Company Limited (SSGC)
Corporate Communication Department (Media Relations)
ST-4/B, Block 14, Sir Shah Suleman Road,
Tel: +92-21-99021773, +92-21-99021000
Email: firstname.lastname@example.org, email@example.com