Tuesday, September 08, 2009

Karachi Electric Supply Company (KESC) has paid Rs1.34 billion to Sui Southern Gas Company (SSGC), out of the total amount of Rs4 billion of the monthly bill charged for the month of August. The outstanding dues of Rs13.65 billion has yet to be paid by the KESC to SSGC, the source disclosed. “The KESC has the monthly gas bill of around Rs3 to Rs4 billion that is separate from the sum accumulated as liabilities, which is Rs13.65 billion.

During the month of August, the KESC has made payments twice, one on August 15 and the other on August 26. Nothing has been paid for the month of September, it was decided between the two utilities that the KESC will pay Rs550 million from the arrears along with the current bill. But the payments made in August are apt to explain the situation,” said the source. He added that the company understands that the KESC is facing financial crisis but at the same time it should be kept in mind that SSGC is also a utility, and if payments are not made on time, SSGC will also face financial problem. “The claim that the gas pressure is low is incorrect. SSGC has agreed to supply 256 MMCFD of gas to the KESC, but on Friday when the three units of Bin Qasim Power Plant and Korangi Thermal Power Plant went off, SSGC was supplying 270 MMCFD of natural gas. After those units were closed for maintenance, KESC is now receiving 235 MMCFD of gas for power generation. The SSGC is facilitating KESC as much as possible but the utility should also realize the situation,” he further added.

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Tuesday, September 08, 2009

India has exited from a gas pipeline deal it earlier planned with Iran and Pakistan, Mehr news agency reported citing Pakistani diplomat. “India has definitely quitted the IPI (India-Pakistan-Iran) gas pipeline deal,” the report said Sunday citing Pakistani ambassador to Iran, Muhammad Bux Abbasi. Iranian officials, however, said India has not yet officially declared its intention. In May this year, Tehran and Islamabad signed a $7.5-billion deal for supply of gas from Iran to Pakistan. As per the deal, Iran will initially supply 30 million cubic meters of gas per day to Pakistan which would be later increased to 60 million cubic meters per day. Iran, Pakistan and India had conceptualised the project in 1990s to help boost peace and security in the region, besides mitigating the power crisis. India stopped negotiations on the project due to tension with Pakistan, although Iran repeatedly encouraged New Delhi to rejoin the process, according to the report. The pipeline will run 2,775 km when linked with the three countries. The project would have greatly benefited India, which lacks sufficient natural gas to meet its rapidly increasing domestic requirements. Pakistan has been facing electricity shortfall of more than 3,000 megawatts and plans to generate 4,600 megawatts from Iranian gas. Islamabad has also been under pressure from Washington to abandon the deal.

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Tuesday, September 08, 2009

LONDON: Gold held broadly steady on Monday just shy of $995 per ounce, consolidating stellar gains last week that took it tantalisingly close to the $1,000 psychological level, with buyers encouraged by dollar weakness. Investment in palladium continued to jump, sending prices close to highs for the year, with fund holdings swelling on expectations depressed auto demand would pick up. Spot gold stood at $994.70 per ounce by 1348 GMT, broadly steady from $993.40 quoted late in New York last Friday. The price rose as far as $997.20 last week, its highest since February, when it briefly topped $1,000. Gold found support at lower levels but trading ranges were narrow and volumes were said to be thinner, with investors restraining themselves due to Monday’s US public holiday. A confluence of dollar weakness, making the metal more attractive to non-US investors, and doubt about the sustainability of global economic recovery prompted a spate of investors to seek refuge in gold last week, as prices hit six-month highs. Analysts said a run to $1,000 was inevitable. “It will have a go, we are within reach,” said Ole Hansen, senior manager at Saxo Bank. “Within the first few days of this week we should have an attempt.”

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