KARACHI: The Sui Southern Gas Company (SSGC) has asked the Federal Government to transfer 11 acres of land belonging to Pakistan Steel Mills (PSM) to SSGC, for the construction of the LNG terminal and for storage purposes.
According to a source in Islamabad, the SSGC has submitted its proposal to the Federal Government as PSM is required to pay its Rs 61 billion in dues. The Federal and Sindh government have no other option but to clear the dues. Following the proposal, the Federal Government is likely to allocate the land to SSGC against the PSM’s dues, a source in SSGC stated.
The top management of SSGC has requested the Federal Government, by way of a proposal, to facilitate the transfer of 11 acres of PSM’s land on an urgent basis to set up a terminal of Liquefied Natural Gas (LNG), as the land is located close to the Bin Qasim Port.
According to the source in Islamabad, “the government is mulling to transfer PSM’s land to SSGC so that a RLNG terminal could be set up in this area.”
However, the final decision would be taken in a meeting of Economic Coordination Committee (ECC) soon.
Following the sacking of 4,544 of its employees , the Pakistan Steel Mills (PSM) has been completely shut down since November 2020. Prior to shut down, the management of PSM had achieved a production level at 33% and had also committed to paying current dues. PSM had also pledged to pay the outstanding amount in instalments along with current bills.