Sui Southern Gas Company and Tuwairqi Steel Mills Limited have signed the a Head of Terms, which would lead to a General Sales Agreement between the two companies, for the supply of natural gas over a 10 year period, with the option to extend the arrangement for another 10 years. The HOT signed was first cleared by the boards of the two companies and the Oil and Gas Regulatory Authority.

HOT provides for the supply of 45mmcfd of piped natural gas from SSGC to Tuwairqi Steel Mills. Only 5mmcfd of natural gas would be used as fuel, whereas the remaining would be used in the processing of iron ore, using an advanced Direct Reduced Iron technology for the production of steel billets.

SSGC, Pakistan’s leading energy sector company and model gas utility, has a turnover of over $1 billion. The company’s high pressure network of 3,000 kilometers and distribution network of 26,000 kilometers extends across the southern provinces of Sindh and Balochistan.