Gas companies to spend Rs64.2bn on reinforcing transmission network

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) would spend around Rs 64.209 billion on upgradation of transmission and distribution network in their respective areas during the current fiscal year.

"The gas utility companies have planned to invest Rs 12,702 million on transmission projects, Rs 43,045 million on distribution projects and Rs 8,462 million on other projects bringing the total investment of Rs 64,209 million," official sources told APP.

Besides, the companies would provide approximately 414,723 new gas connections during the period, while National Assembly Standing Committee on Petroleum and Natural Resources has recently recommended that the two state companies - SNGPL and SSGCL - would give two million gas connections during the fiscal years 2017-18 and 2018-19.

Answering a question, the sources said SNGPL issued 1.5 million new connections since the Pakistan Muslim League-Nawaz (PML-N) government came into power in 2013, and hopefully the figure would reach 2.5 million till completion of its tenure. Whereas, new connection on SSGCL network is granted without any delay and "there is almost no such pendency," they added.

The sources said with the import of Liquefied Natural Gas (LNG), the energy situation had improved across the country, which is the cheapest alternative fuel and the only available remedy to meet the country's energy needs especially when the existing natural gas reserves were depleting.

During July 2016 to February 2017, the sources said, the companies provided 360,465 domestic, 339 commercial and 20 industrial connections across the country.

While, they spent Rs 17,925 million on transmission projects, Rs 11,183 million on distribution projects and Rs 14,925 million on other projects.

The companies laid 814 kilometer gas transmission network, 4,153 kilometer distribution and 1,162 kilometer service lines and connected 104 villages and town to gas network.

The sources said around 48 percent energy-mix needs of the country are being met through natural gas, adding that the country had an extensive gas network of over 11,538 kilometer transmission, 1,14,982 kilometer distribution and 31,058 kilometer services gas pipelines to serve more than 7.9 million consumers.