After a strategic breakthrough, K-Electric and Pakistan LNG Limited (PLL) have stepped into an initial Gas Supply Agreement (GSA). This will provide the supply of 150mmcfd RLNG for K-Electric’s flagship 900MW power plant at Port Qasim (BQPS-III). The GSA will be implemented promptly after the approval of the Oil & Gas Regulatory Authority (Ogra). Once fully operational, the $650 million, 900MW plant will boost Karachi’s power supply. This planned project is a part of KE’s planned initiatives designed to bridge Karachi’s demand-and-supply gap by the end of financial year 2021-22. Presently, the Sui Southern Gas Company (SSGC) holds the gas distribution rights. As KE and PLL have entered into the initial GSA while SSGC claims around Rs127 billion outstanding receivables on KE. But as per the documented details, both the power company and the SSGC are working with the government on arbitration process to resolve the issue permanently. The PLL has finalized the interconnection agreement with the SSGC. Albeit KE does not require any separate agreement with the SSGC for the supply of gas to its BQPS plant.