ISLAMABAD: The unaccountable for gas (UfG) of Sui Southern Gas Company (SSGC) has been reduced by 33 percent from 78 bcf in 2018-19 to 52 bcf by 2021-22.
Karachi consumes 60 percent of the gas. Focused efforts have helped reduce Karachi’s UFG from 14.17 percent (fiscal year 2018-19) down to around eight percent in the last six months of the current fiscal year.
UFG in interior Sindh has been arrested to under 14 percent and from 16 percent in 2018-19.
Work is under way to upgrade the gas pipeline network to reduce gas leakages, strengthen the measurement and billing system, and regulatory action has been under way against theft, illegal connections and meter tampering.
Balochistan is a bit challenging due to various reasons. The UFG is around 25 bcf alone in Quetta. Revision of new gas slabs also has a negative impact on the revenue of the company and the reduction efforts of UFG. In winter, usage of gas in Balochistan increased manifold and falls in last domestic slab of Rs3,100 per mmbtu. The consumer cannot clear the bill. In addition, a Balochistan court issued directives to reverse the slabs of gas before January 2023.
As per the SSGC, raids against gas theft were conducted and 339 FIRs lodged, Rs337 million fines raised, and 285 recovery suits filed. However, criminal trials in progress, in gas utility court, were 368 and 164 accused were convicted.
To enhance its value proposition, the SSGC is promoting business diversification by establishing SSGC Alternate Energy (Pvt) Limited to bring in unallocated gases to market, optimise gas quality, capitalise on bio-gas potential and drive synthetic gas revolution through coal to gas. The coal to gas potential from a single block is estimated 1200 mmcfd.
The SSGC finalised its pending five years financial accounts, incorporating legacy losses to the tune of Rs36.7 billion over the period 2011-15. From being a loss-making company, SSGC declared Rs1.9 billion in profit for the fiscal year 2020-21 and earnings per share of Rs2.22.
In the wake of the widening demand-supply gap, the SSGC LPG (Pvt) Limited a fully owned subsidiary of the SSGC is being harnessed to enhance LPG supplies, SSGC-LPG brought the largest LPG vessel into Pakistan of 9,375 metric tons and has increased its terminal utilisation to 80 percent. As a result, the SSGC LPG has opened up new outlets throughout its franchise and upgraded its network.
The SSGC has finalised a new technology transfer and license agreement with the technology supplier, enabling the company to complete the localisation of gas meters and enhance indigenised contents from the current 53 percent to 97 percent. Through import substitution, the SSGC is set to achieve substantial savings in foreign exchange expenditure. Meter Manufacturing Plant has been upgraded through the installation of completely new assembly line comprising automated equipment after the renewal of the said agreement.
Copyright Business Recorder, 2023