Tuwairqi Steel Mills Limited (TSML), owned by Tuwairqi group of Saudi Arabia, and Pakistan's mega utility, Sui Southern Gas Company (SSGC), have signed the Head of Terms (HOT) that would lead to a General Sales Agreement (GSA) between the two companies for supply of natural gas over a 10-year period. They have the option of extending the arrangement for another 10 years, says an official statement. SSGC managing director Munawar B Ahmad and Chairman Al-Tuwairqi Group of Companies Dr Hilal Hussain signed the HOT on March 29. The HOT was first cleared by the respective boards and the Oil and Gas Regulatory Authority (OGRA) of Pakistan. The HOT provides for the supply of 45 mmcfd of piped natural gas from SSGC to Tuwairqi Steel Mills over a period of 10 years, with the option to extend the arrangement for another 10 years. Only 5 mmcfd of natural gas will be used as fuel, whereas the remaining will be used in the processing of iron ore, using an advanced Direct Reduced Iron (DRI) technology for the production of steel billets. On the occasion, Ahmad stated: "We are pleased to have initiated this long-term agreement. We are also delighted that Tuwairqi Steel is using new technology to use natural gas in an efficient manner adding greater value to their product."
