Pakistan: SSGC bid for Progas Approved by High Court
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Monday, 17 October 2011 |
The Sindh High Court has approved Sui Southern Gas Company’s Rs2.25bn bit for Progas Pakistan, which owns the country’s sole liquefied petroleum gas (LPG) import terminal. The acquisition is expected to substantially improve the profitability of the utility company.
“We are arranging the funds and would make payment as soon as possible,” said SSGC Managing Director Azim Siddiqui. “As this would be our subsidiary, therefore, the impact would directly be on the bottom-line,” he added. Siddiqui also told reporters that the acquisition of the terminal would allow SSGC to offer LPG as an alternative fuel, reducing demand pressure, particularly in rural areas.
SSGC had initially agreed to buy the terminal for Rs1.84bn, but were forced to increase their price to Rs2.25bn to match an offer by directors of Progas and the National Logistic Cell (NLC). The parties referred the deadlock to the High Court, which ruled in favour of SSGC with an option for appeal. SSGC will seek necessary licenses from the Oil and Gas Regulatory Authority (OGRA) and EPA, and to negotiate concessions with the Port Qasim Authority.
PetrolWorld 17102011
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