The sale of the Sui Northern Gas Company Limited (SNGPL) has increased by 15 to 18 percent in six months due to increased supply. Last year, the SNGPL sold gas for Rs 84 billion and for the current fiscal year the company has set targets of Rs 100 billion.
It was stated by SNGPL Managing Director Abdul Rasheed Lone, in a telephonic interview with AAJ Markets. He said out of three wells, two are already linked with the system and supplying gas, whereas the third well, Manzali II, is expected to supply gas for 15 years, would take at least a year to develop.
The SNGPL will lay a pipeline from Kohat to Peshawar with a cost of Rs 1 billion to be completed in 12 to 14 months, while the Company will fund the project from its own sources.
He also said that SNGPL widens its distribution net work by 4,000-km every year, 2,800-km added so far and 4,000-km target for the year will be achieved.
About the World Bank loan, he said the SNGPL has $85 million World Bank loan. The Company is honouring its debt payment on time there is no issue of rescheduling or default, he added.
Lone said the Company has offered a lump sum payment to the World Bank though final decision on the issue will be taken after discussing it with the government. He said 17.50 percent fixed rate of return on Assets from government should continue even after privatisation.