KARACHI: Sui Southern Gas Company (SSGC) has achieved the milestone to decrease unaccounted for gas (UFG), streamline the HR department, increase revenue through non-operating income and provide better controls within the Company during the last couple of years.
The SSGC management initial focus was on UFG reduction, HR reforms, new ventures, better management of core business operations, controls and cost reduction.
Managing Director, SSGC, Imran Maniar while briefing a group of reporters at his office said the whole strategy of UFG was redone by focusing on smaller areas, giving accountability to the regional managers, increasing rehabilitation work by outsourcing, and using internal resources like P&D, monitoring P&Ls at the TBS level, increasing automation for better control and using multiple avenues to attack UFG.
“The results speak for themselves as 90 percent of our franchise is now under the OGRA benchmark,” he said and added this has not happened at SSGC in the last 20 years.
He noted that UFG was and still is the single most critical component impacting the profitability of SSGC. “Three years ago, we stood at 55 BCF of loss at 15.3 percent”, he added.
A UFG Hub had been established a year ago, consisting of 40 executives from cross-functional departments whereas measurement and CGTO were under its direct control. Distribution and billing which are the major factors in contributing UFG were not part of the HUB.
The Board of Directors Committee had identified key factors that impacted UFG. Focused monitoring and data trending was being carried out for the 14-highest UFG SMSs on a priority basis.
He pointed out that a major drive against domestic theft and recovery of gas claims had been initiated in Sindh and Balochistan. As a result of industrious efforts, UFG of Nawabshah region was reduced from 24 percent to 10 percent whereas that of Larkana was reduced from 36 percent to 14 percent, during the July-November, 2023 period as compared to the corresponding period in the preceding year.
He said Balochistan UFG has been and continues to be a major driver in the profitability of the Company and several measures have been taken to help mitigate this impact.
He pointed out that a number of areas under the control of law enforcing agencies which could not have been accurately billed due to limitation of access have now been fully identified. Ghazaband Camp is an example of such areas where through installation of dedicated PRS and internal streamlining of operations that includes leak rectifications and meter replacements resulted in spare gas which is being diverted to Pishin Zone, consequently the sale of the zone has been improved and resulted in considerable reduction in UFG from 58 percent to 25 percent.
Maniar said a stronger drive against the domestic and commercial theft is underway. Accordingly, a dedicated Police Station for counter gas theft has been established at Quetta for deterrence of gas theft.
He said that due to massive improvement and enhanced focus, 735-km rehabilitation works have been completed in FY 2022-23 which is a record achievement from the historical figures. It is also pertinent to report that achievement against the yearly rehabilitation targets remained 96 percent (company-wide) with Karachi (97 percent), Interior Sindh (94 percent) and Balochistan (100 percent).
He pointed out that a mid-term plan is chalked out, aiming to rehabilitate of around 4,500-km distribution network in next 3 years.
In order to achieve a substantial improvement in high UFG cities of interior Sindh, major rehabilitation schemes of around 300-km are planned in three cities i.e., Kandhkot 113-km, Shahdadkot 92-km and Sakrand 75-km.
Through the above enlisted measures, the capacity to execute rehabilitation projects has been increased to 1,500 km per annum which will enable the plan to rehabilitate 4,500 km network every 3 years and cover all the chronic areas especially in Karachi.
He said till December 2023, 10.54 BCF UFG savings has been achieved on Company-Wide basis (as compared to preceding year) with biggest savings of 5.8 BCF contributed by Karachi, whereas, interior Sindh has achieved 2.1 BCF UFG savings, leading to combined cumulative UFG percentage of Sindh retaining within single digit, i.e., 7.0 percent.
Moreover, through the implementation of an aggressive UFG reduction plan aiming at reduction of UFG in Balochistan region by 8 BCF during the current fiscal year; a saving of more than 2.8 BCF savings has already been realized. Over 90 percent of the total franchise is now under OGRA benchmark, a feat that has not been achieved in 20 years. With current efforts in Balochistan it is expected that the company UFG will be in single digit during this year, he said.
Copyright Business Recorder, 2024