The Sui Southern Gas Company came into existence as a
result of a series of merger of three individual gas companies, in Sindh
and Balochistan. The Sui Gas Transmission Company incorporated in 1954,
engaged in operating a natural gas transmission pipeline from Sui to
Karachi. The Karachi Gas Company and Indus Gas Company set-up in 1955 to
build and operate gas distribution systems in Karachi and interior Sindh.
Today, half a century of professionalism and progress
has made the SSGC one of the largest integrated natural gas transmission
and distribution companies in Pakistan, serving the entire Southern
region of the country, comprising the provinces of Sindh and Balochistan.
Since its inception SSGC has been breaking new
grounds by introducing innovative projects and services fulfilling its
corporate and social responsibilities, setting up installations/stations
at far flung areas and developing its distribution and transmission
The Company's gas supply infra-structure consists of
2,786 kms of high pressure transmission pipeline, 23,416 kms
distribution network covering over 737 towns and villages in Sindh and
Balochistan and 62,600 horsepower gas compression facilities.
SSGC has achieved a major milestone by surpassing
total gas flow in its system of 1.2 billion cubic feet per day.
SSGC has doubled its gas transmission system capacity
as from 600 MMCFD in July 2000, to the current level of 1200 MMCFD. This
rapid expansion has been achieved through well conceived and
intelligently engineered Gas Infrastructure Rehabilitation &
Expansion Project (GIREP) at a cost of Rs.3.1 billion. This was made
possible through extensive use of system modeling of gas flows through
SSGC's advanced TG network pipeline system simulation software.
Full flow and capacity utilization has been achieved
with the integration of the Sawan gas field of OMV from Austria, which
has now been completed and started flowing.
Recently, in the last six months, the ENI-LASMO's
Bhit gas field project was completed, which is supplying 250 MMCFD of
gas. Earlier, Zamzama Phase 1 Project was completed by BHP of Britain.
With the recent announcement of the GIREP II Project,
a major 5 years' expansion plan is being undertaken, which entails major
additions of new transmission pipelines and distribution network. After
its completion, SSGC' system capacity will increase by another 500 MMCFD.
ENERGIZING THE INDUSTRY AND MEETING DOMESTIC DEMAND
Since the inception, SSGC has been meeting the
country's fuel needs by merging sound business with national obligation.
SSGC has undertaken supply of the major portion of the country's fuel
gas needs to meet the demand of over 2412 industrial customers, seven
power plants an electric utility, two refineries, one fertilizer plant
and an integrated steel mill. In addition 16,48,874 domestic and 17,429
commercial customers are now enjoying the benefits of natural gas and
SSGC also ensures timely and uninterrupted gas supply to all its
INVESTING IN THE FUTURE
SSGC is poised to meet the challenges of the future.
Based on strategic investments, it has been aggressively upgrading its
distribution and transmission network in line with international
standards at a phenomenal pace.
STRATEGIC BUSINESS PLANS
To meet the strategic business objectives, the
following specific plan of action will be put in place:
• Transmission and distribution system sustainable
gas supply will be increased from 1200 MMCFD to 1800 MMCFD by 2007-2008
• The infra-structure will be expanded by implementing a core
investment program of Rs.34.533 billion covering major expansion of the
transmission and distribution network, to increase customer base by
330,137 over the next five years.
• Expansion in the transmission network by 500 kilometers to connect
all the underdeveloped gas fields to load centers at an estimated
capital expenditure of Rs.17.175 billion.
• Extension of existing gas distribution system by 6400 kilometers in
existing and new towns.
Human Resource Development is one of the top priority
areas of SSGC. The company undertakes several initiatives to ensure
induction and training of professionals with the objective of ensuring
high level of professionalism and productivity at all level of its
employees. Be it basic tasks or complex issues Gas Training Institute (GTI),
established in 2002, and has taken the lead in providing quality
training to SSGC employees.
SSGC believes that satisfied employees provide
quality service. SSGC provides satisfaction of its employees and giving
them adequate incentives to provide high quality work.
The company aims to motivate employees to perform at
their optimum, day in day out. SSGC has adopted an objective based on
Performance Management System, which enable executives to set their own
performance objectives and subsequently monitor their achievement. Due
to achievement of objectives, the company's overall performance
registers substantial improvement in all its areas of operations.
This is an equitable system which records performance
and provides rewards in a fair and transparent manner. The excellence of
SSGC is a testimony of its effective HR Management.
Establishing a framework for good governance and
ethical business practices, SSGC has focused all efforts to ensure
strict compliance with the Code of Corporate Governance contained in
listing. Regulations of the Karachi Stock Exchange (KSE) and Lahore
Stock Exchange (LSE).
A well-written statement of "Business Policy and
Ethical Practices" has been formulated to ensure the highest
standard of ethical and fair business principles. The corporate
management and all employees are to display exemplary behavior in the
light of these guidelines.
The Company has maintained complete transparency and
accurate disclosure of all the necessary and appropriate information,
which is contained in the Director's Report, in strict compliance with
all corporate and financial reporting requirements of the Code.
These activities symbolize the highest standards of
good corporate governance and ethical behavior displayed by the company
and ensures Sui Southern Gas Company's complete compliance with the Code
of Corporate Governance.
CAPITAL STRUCTURE & SHAREHOLDERS
The issued paid up capital of the company is Rs.
6.712 billion representing issue of 671,174,331 ordinary shares of Rs.
SSGC is a public limited company and is listed in
Karachi, Lahore and Islamabad Stock Exchanges. SSGC is managed by a
Board of Directors comprising 14 Directors, who are elected by
shareholders for a three years term. Being the holder of more than 70%
shares, the Government of Pakistan nominates/appoints the same
proportion of the directors. Remaining 30% shares are held by
individual/foreign shareholders, companies and institutions.
OGRA GRANT LICENSE TO SSGC
The Oil & Gas Regulatory Authority (OGRA) issued
non-exclusive license with exclusive rights for transmission,
distribution and sale of natural gas for next 30 years to Sui Southern
Gas Company Limited.
The objective of the OGRA was to foster competition
to increase investment in the midstream and downstream oil and gas
sectors and to protect the rights of the consumers. Besides, the
issuance of license to the two main companies, OGRA also issued
performance and service standards for the license holders.
EXCELLENCE IN CUSTOMER SERVICE
Professionals at SSGC strive for providing un-matched
and diverse services to the customers through innovative and progressive
ideas inline with best international practices. For speedy and efficient
handling of customers complaint, queries and suggestions. SSGC has
developed Customer Facilitation Centers at all its divisional offices.
These centers provide a fast and efficient system of customer care
• Moto for the year 2003 "Service with a
• Up-grading existing 8CFCs in Karachi, Interior Sindh and Balochistan.
• Establishing 15 new CFCs in Karachi, Quetta, Pishin, Sibi, Hyderabad
and Sukkur city.
• All CFCs will be modern, well equipped & well located.
EDGE IN TECHNOLOGY
Quest for excellence and cutting-edge technology has
played a key role in SSGC expansion and strength.
Above all, technology brings greater benefits to
customers. For example, all SSGC meter reading is now carried out
through hand held computers — saving valuable time and minimizing
errors. For industrial customers, Meter Tek Data Logger system is
installed on meters with computerized electronic volume-correctors. This
is a high-tech remote monitoring system for daily gas consumption
extensively used in distribution and gas load management.
SSGC's computerized billing system prints bills
through the online network in the entire franchise areas. While payments
made to the banks are transferred online for processing.
Today, SSGC is set to become the most IT enabled
Company in the region. Realizing the need for integration of IT into
core business processes, the Information Technology Department is
rendering strong support to SSGC. A key initiative of this department is
the implementation of the Geographic Information System — a
computer-based system that effectively provides forecasting data for
further strategy development.
Increasing the efficiency of business processes is
another priority area for SSGC. An Enterprise Resource Planning (ERP)
software integrates all departments and functions on to a single
computer network. Through Business Process Re-engineering (BRP), the
company performs critical analysis of existing business processes to
achieve breakthrough improvements in performance measures, where as a
state-of-the-art Unified Messaging System has also been introduced to
achieve greater efficiency.
Maintaining its technological edge, SSGC has signed a
comprehensive enterprise agreement with Microsoft — the only such
agreement by a public sector utility company in Pakistan.
Since the pipeline network forms the backbone of
SSGC's operations, special steps have been taken towards ensuring
maximum efficiency. Using highly advanced PL Studio simulation software,
PL Studio is capable of accurately simulating large, complex pipeline
network, on the basis of which the performance, efficiency and financial
viability of new projects is evaluated before actual implementation.
Telecommunications play a vital role in maintaining
high operational efficiency at SSGC. Through the advanced microwave
digital network, and with video conferencing facility, all SSGC offices
and facilities remain connected 24 hours a day.
SSGC is committed to the health & safety of its
employees and preservation of the environment in its areas of operation
and will continuously adopt, implement and improve appropriate
procedures, processes and safeguards to achieve these objectives. It is
believed that; "No business activity is more important then health,
safety and environment".
In pursuance of this belief, company is establishing
HSE management system to ensure that the standards, processes and
procedures needed to achieve safe operations are identified, implemented
and maintained. SSGC's Health Safety and Environmental Management System
is a common framework connecting business planning, implementation,
measurement and performance improvement. This system guides our
businesses in systematically managing the HSE aspects of their
Today Human Resources are the most valuable assets of
an organization to ensure their well being, an attempt is being made to
develop comprehensive safety policies for the Company in order to
achieve maximum benefits of accidents prevention by enforcing these
policies in their true spirit. These policies will undergo a constant
review for necessary modifications/amendments/additions as and when
EMERGENCY RESPONSE CENTRES (ERCS)
ERCs are established at six key locations at Karachi
and Quetta terminals, Shikarpur, Nawabshah, Dadu and Sibi Head Quarters.
These are fully equipped to deal with any emergency situation in case of
transmission gas pipeline rapture/fire resulting from sabotage, wars
acts and similar activities. The ERCs teams are capable of reaching
affected segment within hours along with necessary machinery equipments.
The SSGC has installed remote actuated valves to
isolate the selected sections of the transmission pipelines in the event
of emergency through remote operation of the valves from its Head Office
and other control stations. This is a major improvement which allows the
Company to reduce the loss of gas to the atmosphere in the event of
CORPORATE SOCIAL RESPONSIBILITY
The company has always been committed in its
obligation towards community development of the areas where it is
operating. Its social welfare programme is reflective of its concern for
society as a whole.
SSGC has formulated a policy, relating to donations,
charities, contributions and other payments of similar nature, named as
SSGC Corporate Social Responsibility Initiative.
It aims to fulfill the company's Corporate Social
Responsibility by providing financial support to educational, health,
environment and social projects/humanitarian causes in the current
For the betterment of community SSGC is engaged in
the following projects:
• Cooperation with WWF for preservation of
"Mangroves Forests" in the coastal areas of Karachi. SSGC is
laying distribution gas pipelines in the village of Kakapir at Sandspit
to provide an alternate fuel to reduce the cutting of endangered
mangrove trees by the local villagers.
• Establishing of community centre at Ghari Khairo. The company will
support the backward area of Ghari Khairo, by sponsoring social welfare
projects for the local community.
• Steps to conserve the ancient and valuable Juniper forest in Ziarat
(Balochistan) through supply of alternate fuels.
• SSGC intends to extend its social responsibility by providing
financial support to save this precious national asset. The company has
planned to lay gas pipeline project upto Ziarat within a year to provide
natural gas as an alternate fuel to the local population. In the mean
time, the company has provided LPG cylinders and stoves to the residents
• The management of SSGC has decided in principle to sponsor the
component of "Amphi-theatre of Botanical Garden a joint venture of
DHA & Horticultural Society of Pakistan to support environment and
other activities of public and national importance
• SSGC will provide financial support for the establishment of
Petroleum, Oil and Gas Engineering Faculty in NED University.
• SSGC will provide support to UET, Lahore to strengthen its existing
Petroleum Engineering Department and for expanding the program to
include downstream oil and gas disciplines.
EXCELLENCE IN FINANCIAL PERFORMANCE
STABILITY WITH EXCELLENCE AND A SOUND FUTURE
SSGC is a Blue Chip Public Limited Company quoted on
the stock exchange having AA credit Rating.
During the financial year ended 30th June 2003 the
company sold 254,349 MMCF Gas for a value of Rs.36.163 billion which was
higher by 8% and 12% respectively over last year. Operating Profit was
For the same year the Company earned pre-tax profit
of over Rs.2.049 billion as compared to Rs.2.154 billion of 2001-2002
and after tax profit of Rs.1.448 billion in comparison to Rs.1.435
billion of the previous year.
The net profit is based on 17% annual return on
average net fixed assets. The Earning per share was Rs.2.16 per share.
Cash dividend distributed for the year 2002-2003 was Rs.1.80 per share
(18%) as compared to Rs.1.75 (17.5%) for the previous year.
With five years core investment program in place,
SSGC will witness improvements from 2003-2008 in its financial
The company is continuously engaged in evaluating and
planning various activities and projects with the objective of
converting the opportunities arising out of the discoveries of new gas
resources into real benefits for its stakeholders.
MONTHLY PUBLICATION 'THE FLAME'
SSGC's monthly publication "The Flame" is
being published. It gives extensive coverage to the Company's activities
ranging from new projects to training programmes and provides
information about SSGC in particular, and the national, regional, world
energy sector in general.