The company provided 2,06,586 domestic, 4,013 commercial and 531 industrial connections during the year under review.

KHALID BUTT, Bureau Chief, Lahore
Oct 16 - 22, 2006

Sui Northern Gas Pipelines Limited (SNGPL) is set to play a key role in the future development of the energy sector in Pakistan.

The dynamic Managing Director of SNGPL, Rashid Lone is upbeat about the bright future of the company which is set to launch some mega projects in the coming year. In an exclusive interview with PAGE the Managing Director talked wistfully about the historical result, achieved by the company during the last year ended June 30, 2006.

The turnover during the last year, according to SNGPL Chairman Altaf M. Saleem, increased by 26.95 percent to Rs. 105.851 million (2005: Rs 83.377 million) and profit before tax has increased by 20.12 percent to Rs. 5,119 million (2005: Rs.4,261 million) and earning per share has increased by 36.13 percent to Rs. 7.64 per share.

The share market price has increased by 63 percent at Rs. 100 (2005: Rs 61.30 per share) and the Board has recommended 30% dividend at Rs. 3.00 per share (2005: Rs.3 per share) along with bonus shares at the rate of 10 percent i.e (1/10) of the shares held. The annual general meeting of the SNGPL is scheduled to be held in Lahore on October 30, to take up the recommendation of the Board, consider and adopt the audited accounts of the company for the last year and approve payment of cash dividend as recommended.

PERFORMANCE: The company has striven hard to adhere to the benchmarks set by the Board and the Regulator. It continued to maintain the position as the leading supplier of natural gas in Pakistan. It could not afford to be complacent and has been seeking continuous improvement in various activities. This enabled it to further develop their technological and managerial skills, offering better services to more than 2.7 million consumers. Its constant effort to look after and expand the consumer base is at the heart of their strategy for growth, according to the management. The company sold 571.481 BCF gas which is 6.40% more as compared to the last year. The company managed its business with its own funds with no borrowings from any financial institution, during this year. The company has contributed an amount of Rs 16,606 million towards national exchequer as taxes, which, as compared to the last year, increased by Rs. 2,719 million (19.58%). The profit after tax was Rs 3,722 million (Rs 2,736 million for F.Y. 2004-05). During the year, the company maintained all the financial ratios as prescribed by the World Bank loan covenants, standard corporate practices and the State Bank of Pakistan.

OPERATIONS: The company provided 206,586 domestic connections, 4,013 commercial connections and 531 industrial connections during the year under review. The industrial connections provided to the CNG stations, substituted petroleum products and in case of power and cement plants replaced coal and imported furnace oil. These achievements have been possible with the concerted efforts of the employees, availability of gas and patronage of the Government of Pakistan, to strive for industrialization. The transmission system of the company has been extended to 6,195 km, whereas the distribution system extends to 46,964 km. The service departments have also kept the flag of the company flying high with regard to telecommunication, engineering services, human resource development, consumer services, health, safety and environment issues.

A unique pilot project was undertaken by the company to supply natural gas to remote areas through CNG. The concept of a mother-daughter station system was used for the first time in the country for this purpose. A landmark project - supply of gas to Murree Hills - was undertaken by the company and successfully commissioned during the last financial year. It was later formally inaugurated by the President of Pakistan on August 28, 2006. It is the first time in the history of pipeline construction in Pakistan that a gas line has been constructed at such a high elevation. The serpentine pipeline route, the rocky and hilly terrain, the movement of heavy construction equipment e.g. dozers, cranes, trucks etc, mobilization of men and equipment against the steep elevation of more than 6,000 feet above the sea level, was a demanding task. On top of it, transportation and stringing of pipeline to the top of the hills was not less than a Herculean task. Trenching and lowering of welded pipe on steep slopes through thick jungles was something extra-ordinary considering the available resources. The land problems, the crossing of Soan River, Ling Drain, the road and railway crossings were tough challenges but all these hurdles proved too little against the rock-like courage and determination of the construction teams.

The construction of Murree line has brought the gift of natural gas to the residents of Murree which will bring prosperity and boost economic activity all around. It will have long lasting positive effects on the environment through preservation of forests. Another hallmark of this line is that it was completed without any fatal or major injury despite the tough terrain.

The construction of Rawat-Murree line has provided exceptional experience to pipeline construction teams and given them the confidence to undertake even more challenging jobs in future. The total length of 12" dia, Rawat-Murree transmission line is 58 km while distribution supply mains were completed with a total length of 17 km in first phase.

FUTURE DEVELOPMENTS: The company is planning to take up Project-IX (P-9) laying of 573 km, 12"- 36" dia, pipelines. This project will be executed in two phases. Phase-I (Advance Action Plan P-9) will include the construction of 140 km, 24" diameter Gurguri-Kohat-Nowshera line. The basic objective of Project-IX is to absorb additional gas available from existing and new sources viz Gurguri, Rhodo and Zamzama, besides gas sources of Potohar region through system up-gradation with loopline and compression facilities enhancement.

This mega project will further increase the asset base of the company and consequentially the fixed returns.

Sui Northern Gas Pipelines (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, and is listed on all the three stock exchanges of Pakistan.

The company took over the existing Sui-Multan system (349 kms of 16 inch and 129 kms of 10 inch diameter pipeline) from Pakistan Industrial Development Corporation (PIDC) and Dhulian-Rawalpindi-Wah system (132 kms 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 with an existing transmission system of 6,195 kms and distribution system of 46,871 kms. The company serves more than 2.7 million consumers in North Central Pakistan through an extensive network in Punjab and NWFP. The company has over 43 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.



W.E.F 01-01-06 RS./MMBTU  


1st slab (upto 100m3  per month) 


2nd slab (over 100-200m3 per month) 


3rd slab (over 200-300m3 per month) 


4th slab (over 300 m3 per month) 


Commercial Consumers 


Industrial Consumers 


CNG Station 


Cement Factories 



-Feed stock:  

Pak American 


Pak Arab 


Dawood Hercules 


Pak China/Hazara 


FFC Jordan 




Power Stations 


Captive Power