SNGPL — THE LARGEST INTEGRATED UTILITY FUELING THE ECONOMY
The Company has over 39 years experience in operation and maintenance of high-pressure gas transmission system
From KHALID BUTT, Lahore
Apr 03 - 09, 2006
Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private limited company in 1963 and converted into public limited company in January 1964 under the companies Act 1913, now companies ordinance 1984, and is listed on all the three stock exchanges of the country.
The Company took over the existing Sui-Multan System (217 miles of 16 inch and 80 miles of 10 inch diameter pipelines) from Pakistan industrial Development Corporation (PIDC) and Dhulian-Rawalpindi-Wah System (82 miles of 6 inch diameter pipeline) from Attock Oil Company Limited. The company's commercial operations commenced by selling an average of 47 MMCFD gas in two regions viz Multan and Rawalpindi, serving a total number of 67 consumers.
SNGPL is the largest integrated Gas Company serving more than 2.5 million consumers in North Central Pakistan through an extensive network in Punjab and NWFP. The company has over 42 years of experience in operation and maintenance of high-pressure gas transmission and distribution systems. It has also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations.
It also developed a strategy to maximize sale of gas by entering into new areas through development expansion of requisite infrastructure.
The company has its focus on country's economic revival by out reading industries for gas supply. Displace imported liquid fuel to save foreign exchange. Introduce policies and practices leading the company from monopoly to competitive market thus facilitating privatization.
The company with a renowned private sector figure - Mr Altaf M. Saleem, as its chairman, has a dynamic Managing Director, A. Rashid Lone, who has risen from within the company, by dint of sheer merit and outstanding performance in diversified management positions over the years.
The company has maintained its continuous growth over the years and closed the last year on a highly commendable note to show improvement both in revenue and profits as well as better value for over 2-5 million consumers.
A spokesman of SNGPL told the company was looking forward to sustained growth and expansion in future and maintains its position as the leading supplier of natural gas in Pakistan.
Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas Company in Pakistan, engaged in the business of Transmission, Distribution and Sale of natural gas. The Company has over 39 years experience in operation and maintenance of high-pressure gas transmission system. It has also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations. The company has now sold out the purification and LPG operations, being non-core business.
SNGPL was incorporated as a private limited company in 1963 and converted into a public limited company in January 1964 under the Companies Act, 1913, now Companies Ordinance 1984, with the objective of transmission and distribution of natural gas in the provinces of Punjab and North West Frontier. For this purpose the Company took over the existing Sui - Multan System (217 miles of 16 inch and 80 miles of 10 inch diameter pipelines) from Pakistan Industrial Development Corporation and the Dhulian - Rawalpindi -Wah system (82 miles of 6 inch diameter pipeline) from Attock Oil Company Limited. The Company's commercial operations commenced by selling an average of 47 MMCFD gas to 67 consumers in two regions, namely Multan and Rawalpindi.
SNGPL transmission system extends from Sui in Balochistan to Peshawar in NorthWest Frontier Province (NWFP) comprising over 5,700 Km of high-pressure pipeline ranging from 6' to 36" in diameter. The distribution activities covering 460 towns, villages and cities in the Punjab, NWFP and Federal Capital are organized around 8 regional headquarters namely, Bahawalpur, Multan, Faisalabad, Lahore, Gujranwala, Islamabad, Abbottabad and Peshawar. An average of 936 million cubic feet per day (MMCFD) gas was sold in 2003 to over two million industrial, commercial and domestic consumers through a distribution network of over 35,000-Km.
The Company had completed six major expansion projects from 1964 to 1998 constructing 3932-km. transmission and 155000 H.P. compression. As a result of this the system capacity has increased progressively from 90 MMCFD to 980 MMCFD in Bhong - Multan pipeline segment.
Presently the company has completed a gas infrastructure development project six months ahead of schedule envisaging combination of looping and compression to expand its transmission system to deliver recently discovered gas in the south to power plants in Multan region.
OIL AND GAS DEVELOPMENT COMPANY LTD.
Exploration & Development of Oil & Gas Resources
Exploratory Wells : 207
(UP TO 01-01-2006)
Development Wells : 246
(UP TO 31-07-2005)
MAJOR OIL & GAS FIELDS
Chanda, Tando Alam, Thora, Sono,Bobi, Pasaki, Lashari, Toot, Chak Naurang, Fimkasar, Dakhni, Sadkal, Rajian, Missa Kiswal, Kal, Dhodak, Missan, Loti, Qadirpur, Nandpur, Uch, Daru, Kunnar, Palli and Pirkoh.
Jandran, Dudial, Shahana Fateh Jamg, Rachna, Saruna, Zamurdan, Kotra, Zin, Bitrisim, Tando Allah Yar, Nim, Sinjhoro, Gurgalot, Khewari, Nashpa Siahan (Reconnaissance Permit), Indus Delta-A Bitrism, Bagh, Kohlu & Kalchas.
Crude Oil, Gas, LPG and Sulphur
Crude Oil 40,527 Barrels per day
Gas 1,173 Million cubic feet per day
LPG 395 Ton per day
Sulphur 62 Ton per day
Rs 73.710 Billion
PROFIT AFTER TAX
Rs 32.968 Billion
The project includes the following additional facilities to carry 525 MMCFD additional gas from Sui, Qadirpur, Hasan, Kandhkot and new finds of Sawan, Zamzama and Badar to Multan and Kot Addu which will replace 4.4 million tons of liquid fuel per year, thus saving US$ 500 million per annum. The system capacity shall increase from 980 MMCFD to 1380 MMCFD in Bhong - Multan segments.
MAIN FEATURES OF THE PROJECT.
Transmission Pipelines 580 km
Size 16" to 36" diameter
Compression 25000 H.P.
River Crossings 4 Nos.
The actual cost incurred on these facilities is Rs. 9 billion approx. while the estimated cost was Rs. 12.5 billion thus saving of Rs. 3.5 billion. The project is being financed through issuance of new equity and borrowings as approved in principle by the Cabinet in the meeting held on 9 August 2000.
SNGPL LINKS HEAVY BILLS TO USAGE AND SLAB IMPACT
The recent uproar caused by the unusually high bills to the domestic Sui Northern Gas Pipelines Limited (SNGPL) consumers have been linked by the responsible officials in the autonomous body to the actual usage as well as the slab impact multiplying the bill as usage volume increases.
Queries to select affectees of the SNGPL bill revealed that none of the exorbitant bills had any thing to do with the arrears. Whatever was being charged from them was the supposed actual usage of that particular consumer. Most of the consumers when asked about the reaction said that they were bewildered to see that there usage has generated such a heavy billing for that particular time period.
Here it may be noted that the SNGPL has about 0.6 million users in Lahore alone out of 25 million all over Pakistan. These consumers are covered by manual monitoring of the respective meters by the field staff, each one of them allocated a certain locality and area, where he goes from door to door to collect the reading. Unlike LESCO, which has the option to issue the suspecting consumer an alternate reading card which is filled by the meter reader every time he takes the monthly reading, it is not so in the case of SNGPL.
Given that fact that there can be any chance of excessive billing by the meter reader was not confirmed by any of the select users queried. None of the consumers had in fact gone through the labor of noting down the daily usage meter reading or even the meter reading on the day the reading was taken by the area concerned meter reader.
An SNGPL official concerned with the billing infrastructure when queried by PAGE said that the issue always propped up during the winter season when the natural gas usage was at its highest. Elaborating his point of view, he said that the usage during that period was estimated to be 316 times higher then the summer time usage. He argued that with increased usage, the slab for billing changed accordingly. He said that the minimum affect amount for the first slab was Rs 81, Rs 147 for the 2nd, Rs 250 for the 3rd and Rs 306 for the fourth slab. Given the fact that the affect was multiplied with four times more usage, it was natural that the bills during the winter month would escalate accordingly. Here the Billing in charge of SNGPL agreed to the point that there was about 3 per cent increase in the overall tariff rate during the period between last winters and the current receding winter season, which was partially responsible for generating such heavy bills for the domestic consumers.
The SNGPL official also clarified that it was not a deliberate policy on part of the SNGPL or the government to excessively bill any one other than the actual usage and it was an incorrect impression that the corporation was making up for its frequent losses in Balochistan and Sindh. He clarified that the pipelines were insured and there was no need whatsoever for SNGPL to charge any time of compensation from the consumers as distant as ones in Lahore do. End
i) SNGPL, a public limited company, is listed on all Stock Exchanges of the country. The company has an authorized capital of Rs. 15 billion, of which Rs. 4.992 billion is issued and fully paid-up. The Government along with its controlled institutions owns the majority of the share (56%) and the remaining 44% are owned by the private sector. The shareholding pattern as on 30~ June 2003 is as follows:
President, Islamic Republic of Pakistan
Government controlled institutions
Dawood Hercules Limited
Muslim Commercial Bank
ii) Policy guidelines and overall control is vested in the elected Board of Directors. Presently, SNGPLs Board comprises 14 members (including MD/CEO), of whom 10 are nominees of Government of Pakistan (GOP) and Government controlled institutions, whereas 4 directors represent the interest of private sector. The Managing Director/Chief Executive is appointed by the Board of Directors and has been delegated with such powers and authorities as are necessary to effectively conduct the business of the organization. The Board of Directors has constituted two Committees of Directors i.e. Finance and Audit Committee and Human Resource Committee. The Finance and Audit Committee has also the financial powers for approving contracts for procurement of goods and services whereas the Human Resource Committee has the recommendatory powers. With the enforcement of Code of Corporate Governance and election of new Directors, these Committees are to be reconstituted.