Sui Southern Gas Company is working on USD 200 million plan to rehabilitate 5,000 kilometers of ageing pipelines to bring a phased reduction in unaccounted for gas over 5 year period.

Mr Salim Abbas Jilani chairman and Mr Azim Siddiqui MD of SSGC said that the distribution network in the biggest gas consuming centre, Karachi has been bifurcated in 3 operational regions on the basis of its natural geographical boundaries and this strategy has started showing results in quantifying UFG levels with respect to sale and purchase volumes.

The managing director acknowledged two major issues. Firstly, in view of the mounting receivables from Karachi Electric Supply Company which have touched a massive figure of PKR 32 billion, the management is proactively working to negotiate a gas sales agreement that would help recover new bills.

The chairman said that KESC’s receivables issue is a major sore point for the company, compelling it to borrow from bank at higher rates. The other issue of overstaffing, which occurred due to the reinstatement of some 2,500 employees through the Presidential Ordinance in 2009 has been resolved by effectively utilizing these reinstated employees in different functional areas through proper training and skill development.

The annual general meeting approved the payment of 25% cash dividend and 5% bonus shares to the shareholders. It was informed that a number of progressive steps have been undertaken such as the fast track import of LNG through a third party regime which would bring in 1.4 billion cubic feet gas by 2012.

Shareholders were also informed that SSGC had acquired Progas LPG Plant that would not only provide additional gas to the far flung areas where gas distribution through conventional pipelines is not cost effective but will also allow divert natural gas to the industry.

(Sourced from www.thenews.com.pk)