The main will be the power sector
By SHABBIR H. KAZMI
Apr 03 - 09, 2000
In the recent years there have been some large-scale natural gas
discoveries in Pakistan. As a result, the availability of gas with the two gas
distribution companies has increased. The availability of gas with Sui Southern Gas
Company (SSGC) has increased from 600 MMCFD to 900 MMCFD. The main beneficiary of this
enhanced availability will be the power generation companies. The list of SSGC customers
now also includes FFC-Jordan, a fertilizer manufacturing unit.
According to the information available, the total gas available from
the new suppliers is estimated at 660 MMCFD out of which SSGC will get 460 MMCFD and SNGPL
200 MMCFD. However, as a result of swaps to SNGPL will get 160 MMCFD currently being
available to SSGC from Pirkoh and Sui fields.
The new allocations to SSGC are from Bhit, Miano and Sawan fields. The
total availability from these fields is estimated at 660 MMCFD out of which 460 MMCFD will
be made available to SSGC. The producers from new gas discoveries are OMV Pakistan, BHP
Australia and Lasmo Pakistan. There is potential for increasing gas production from these
fields if more wells are drilled by the producers.
The existing gas producers are Pakistan Petroleum, OGDC, Union Texas
Pakistan and Lasmo Pakistan. The largest volume of gas is supplied from Sui field of 260
MMCFD followed by 210 MMCFD from Badin-1 and Badin-2. The allocation agreements from Sui
expires in 2003, Badin-1 in 2007 and Badin-2 in 2010.
SSGC has an extensive transmission system comprising of Indus Right
Bank Pipeline (IRBP), Indus Left Bank Pipeline (ILBP) and Kadanwari pipelines. IRBP has
the largest designed capacity of 1,040 MMCFD followed by Kadanwari of 425 MMCFD and ILBP
of 220 MMCFD.
During the year 1998-99 SSGC witnessed 5 per cent growth in sales and
profitability improved by 42 per cent. This was the cumulative effect of increased sales,
reduction in gas purchase price, increase in asset base and decrease in financial charges.
A major accomplishment during the year was the resolution of inter-corporate debt problem.
While gas purchase volume increased by about 5 per cent, the cost of gas declined by
nearly 20 per cent. During the year 579 kilometers of new mains and service pipelines were
laid and another 170 kilometers were rehabilitated/replaced.
The after tax profit of SSGC jumped from Rs 652 million in 1998 to Rs
953 million in 1999. This was mainly due to reduction in cost of sales, higher profit from
meter manufacturing division, other income and reduction in financial charges. The other
expenses registering increase were depreciation and taxation. The depreciation expenses
increased from Rs 1.753 billion in 1998 to Rs 1.849 billion in 1999 and taxation jumped
from Rs 375 million to Rs 512 million during this period.
The gross sales of the Company increased from Rs 15.623 billion in 1998
to Rs 16.349 billion in 1999, but the net sales decreased from Rs 15.833 billion to Rs
14.055 billion. Despite the reduction in net sales, SSGC was able to post higher gross
profit which increased from Rs 5.736 billion to Rs 5.948 billion during this period.
EXISTING GAS SUPPLY TO SSGC |
| Producer |
Field |
Allocation(MMCFD) |
| PPL |
Sui |
260 |
| OGDC |
Pirkoh |
80 |
| UTP |
Badin-1 |
150 |
| UTP |
Badin-2 |
60 |
| Lasmo |
Kadanwari |
40 |
| OGDC |
Daru |
10 |
| Total |
600 |
Source:SSGC
CURRENT SALES (MMCFD) (As on
June 30, 1999) |
| Karachi |
.400 |
| Industrial |
184 |
| Power |
58 |
| Fertilizer |
60 |
| Commercial |
12 |
| Domestic |
86 |
| Sindh |
.150 |
| Industrial |
24 |
| Power |
80 |
| Commercial |
6 |
| Domestic |
40 |
| Balochistan |
.50 |
| Industrial |
1 |
| Power |
16 |
| Commercial |
3 |
| Domestic |
30 |
| Total |
.600 |
Source:SSGC
SECTORAL
SALES(MMCFD) |
| Industrial |
209 |
| Power |
154 |
| Fertilizer |
60 |
| Commercial |
21 |
| Domestic |
156 |
| Total |
600 |
Source:SSGC
NEW ALLOCATIONS
(MMCFD) |
Field |
Gas availability |
SSGC share |
SNGPL share |
| Bhit |
260 |
260 |
Nil |
| Zamzama |
150 |
Nil |
150 |
| Miano |
100 |
100 |
Nil |
| Sawan |
150 |
100 |
50 |
| Total |
660 |
460 |
200 |
Source:SSGC
Swap to SNGPL |
Field |
Gas
availability |
SSGC share |
SNGPL share |
| Pirkoh |
80 |
Nil |
80 |
| Sui
ex-ILBP |
60 |
Nil |
60 |
| Sui
ex-IRLP |
20 |
Nil |
20 |
| Total |
160 |
Nil |
160 |
Source:SSGC
