Advance metering system, reduction of network losses: Rs 30.4 billion NGE Project to be launched

The government would launch "Natural Gas Efficiency Project (NGEP)" worth Rs 30.4 billion (Rs 19.66 billion loan from World Bank, Rs 4.95 billion from local bank and Rs 5.79 billion from internal funds) for installing modern technology to detect and curb gas theft through advance metering system and reduction of network losses due to underground and overhead leakages.
According to documents available with the Business Recorder, the project would improve distribution network and efficiency of Sui Southern gas Company Limited (SSGCL) in terms of reduction in Unaccounted for Gas (UFG). The project is expected to cost Rs 30.4 billion including interest capitalisation of Rs 1.2 billion and revenue cost element of Rs 6.1 billion during implementation period of five years.
The Project financing is assumed to be 80 per cent through World Bank and local bank borrowing while 20 per cent from the Company's internal transfer of fund expect for the segment like training.
The World Bank Loan is relent @ 11.80 per cent on outstanding balance by the Government of Pakistan (GoP) and repayable in 15 years with grace period of 5 years. While the local loan is assumed to be repayable in 5 years including 2 years grace period with mark-up at KIBOR plus 150 Basis Points.
The project will result in saving of precious national resource with the reduction of Unaccounted for Gas (UFG), the gas so available will be provided to power and industrial sectors which will in turn result in reduction of power load shedding and increase economic activity.
The project will be for five years while Result Based Monitoring has been recommended by the Planning Commission as yardstick to monitor the Project.
With the passage of time, the Company is facing huge problems including deteriorated pipelines, malfunctioning, tampered-with-meters, gas leakage due to higher than required pressure and gas theft etc that with the existing resources and capabilities has become extremely challenging to bring the losses down to an acceptable level.
According to document, during the five years plan period UFG reduction programme to be used in the form of replacement of deteriorated pipelines, underground leakage survey and rectification, cathodic protection upgrade, installation of pressure management system and advanced metering infrastructure leading to smart meters and improvement of surveillance at industrial customer meter station/gas connection point etc.
Distribution network rehabilitation is comprising Sales Metering Stations (SMS), Customer Metering Stations (CMS) Cathodic Protection set-up, valve assemblies, regulators and pressure relief valves etc.
Advance metering system will replace old meters that are inaccurate and prone to tampering. Surveillance equipment will also be procured to monitor gas theft at metering stations. About 270 turbine meters will be procured for large industrial customers and about 12,500 ultrasonic meters for industrial and commercial customers. Data acquisition and monitoring systems as well as meter provers will also be procured.
For the measurement system improvement, auto adjusts turbine meters for industrial customers and ultrasonic meter for commercial customers would be installed. After installing new system, the facility to dial customer meter station atomically at pre-determined time and download Electronic Volume Corrector data. The system would also scrutinise low pressure and genuine complaints can be passed to measurement maintenance team. The suspected customers can continuously be monitored from SSGC control room.
The length of distribution network is of 39,253km (Karchi 14,786km interior Sindh 17,626km and Balochistan 6,841 km).
Similarly, an additional 18,700km network, comprising critical segments where deteriorating is high, will be surveyed.
For completion of the Project, Rs 16.23 billion would be spent on rehabilitation of distribution system, Rs 999.5 million for underground leak rectification, Rs 3.63 billion for metering equipment, Rs 2.74 billion for cathodic protection, Rs 1.89 billion for segmentation and pressure management, Rs 659.35 million for vehical and equipment, Rs 3.25 billion for overhead leak rectification, Rs 467.6 million for appliances efficiency pilot project and Rs 553.1 million for technical assistance.