Sui Southern Gas Company Limited

Economic Review, April, 2008 by Salman A. Siddiqui

Sui Southern Gas Company (SSGC) is Pakistan's blue chip gas utility with ISO-14001 and OHSAS-18001 certifications. The Company operates 3,000 km high-pressure transmission network and a 27,000 km distribution network extending across the two southern provinces of Sindh and Balochistan.

Commencing operations in 1954 as Sui Gas Transmission Company (SGTC), SSGC has a sound financial base and an annual turnover of over US $1.2 billion. It delivers natural gas delivering around 1,400 mmcfd to over 1.9 million customers comprising 2,800 industrial units including several large power plants, and 19,000 commercial organizations in more than 1,000 towns and villages. The Company buys gas in bulk from a dozen international and local E&P companies, for distribution across its franchise areas.

The company's five-year, US$ 800 million Development Plan formulated in 2003-04 is designed to expand Transmission and Distribution (T&D) capacity to 1.8 bcfd by the year 2009, enhance system efficiency and optimize service quality. This is a rolling gas infrastructure rehabilitation and expansion plan aimed at increasing the capacity to transmit additional volumes of gas to the load centers.

SSGC is widely acknowledged for its world-class expertise in the engineering, design, construction, operation and maintenance of an extensive gas supply infrastructure and is fully capable of providing innovative gas technology solutions to other companies in the region. The optimal use of technology across all functions has earned the company the reputation of Pakistan's most technology-enabled utility. A Geographic Information System (GIS) that creates seamlessly integrated intelligent drawings of the pipeline net work based on satellite images is currently under implementation. This state-of-the-art system will be integrated with the company's recently launched Customer Information System (CIS) based on SPL World Group's software, Enterprise Resource Planning (Oracle eBusiness Suite) and a state-of-the-art SCADA system for on-line monitoring of the T&D network. In order to help and support customers in meeting the objective of optimizing the use of natural gas and bringing about substantial reduction in energy and fuel costs, SSGC took a bold initiative in 2006 by launching Technical Advisory Services (TAS) that offers free consultancy and technical expertise to industrial and commercial customers for the cost-effective use of natural gas and optimal energy utilization.

SSGC has launched Pakistan's first integrated LNG import project called Pakistan 'Mashal' LNG which is scheduled to bring 3.5 million metric tonnes per annum (mtpa) LNG to its portfolio by 2011-12, which is perfectly timed to meet the anticipated energy gap, resulting from an accelerated rate of economic growth over the next five years. Expressions of Interest (EOI) have been issued to short-listed parties and international companies desirous of implementing the project, on a BOO basis. With the prequalification process already completed, formal Request for Proposal (RFP) is being issued to selected LNG companies.

"Service with a Smile" is the company's motto, and reflects its renewed spirit and commitment towards providing customers first-class service to its burgeoning customer base. It is backed by 24 Customer Facilitation Centers (CFCs), state-of-the-art Call Center and an Emergency Helpline.

As SSGC propels itself to gain competitive advantage through an increasing gas supply portfolio, including planned LNG supplies, application of energy efficient environmentally friendly gas usage, and the induction of best business practices and state of the art technologies in all aspects of its operations, it is well placed to further its role as the leader in the energy sector in Pakistan and across the region.

- Salman A. Siddiqui

Corporate Communications Department