Collecting gas from gas fields, transporting it to over hundreds of kilometers through large pipelines, and then distributing it to varied consumers across a wide geographical span, is no simple task. From the freezing Quetta Region surrounded by snow-capped mountains to the scorching Sibi and Indus-embracing Sukkur to the ever-expanding Karachi region, SSGC’s gas transmission and distribution networks provide a steady supply of the natural gas, the least expensive and most environment friendly of all fossil fuels.
Natural gas is the biggest source of primary energy with a share of 41% in Pakistan’s energy mix. Pakistan also possesses one of the largest gas pipeline networks in the world, nearing some 150,000 kilometers, for gas distribution and transmission, servicing more than 9.5 million customers. However, one of the key technical issues being faced by utility companies around the world and in Pakistan is line losses or UFG.
UFG is the difference between the purchase and sale of gas. UFG is a very serious issue since every 1 per cent increase in UFG means that Oil and Gas Regulatory Authority (OGRA), in such a case, takes away Rs. 1.2 billion from the gas companies’ financial profits as a penalty, thus severely affecting their financial bottom-line.
The major contributing factor in UFG is theft of natural gas. Theft does not only affect the gas companies financially but makes a major dent on the national exchequer. Although in the past, legislation was promulgated to rein in gas theft, efforts made by the gas companies to control gas theft could not make much progress. Moreover, instead of paying their gas bills, a number of consumers in domestic, commercial and industrial sectors resort to using the fuel illegally in clear violation of the Gas Sales Agreement (GSA).
In 2016, National Assembly of Pakistan passed Gas (Theft and Recovery Act) that allowed the imposition of heavy penalties on offenders engaged in various types of gas theft with a maximum punishment of 14 years and a penalty up to Rs.10 million. Hence, SSGC, faced by rising levels of UFG, was driven by the Act to take stringent measures against gas theft cases. It was high time the Company got tough against the scourge of gas theft. The Company’s Security Department was also revamped as the Security Services and Control Gas Theft Operations (SS & CGTO) Department. The newly formed department was constituted with intelligence, security, prosecution and operations wings formed to effectively carry out anti-gas theft operations. In conjunction with SSGC Police that was established back in 2015 and other law enforcement agencies including Sindh Rangers and Federal Investigation Authority (FIA), the department started making regular raids against domestic, commercial and industrial units.
Numbers speak for themselves. Since 2016, SS & CGTO Department has undertaken numerous raids on customers as well as non-customers that were involved in blatant gas theft under the title “Operation Grift” campaign. More than 900 FIRs have been lodged, 222 gas theft criminals have been convicted and over 372 criminal trials are in progress.
SSGC’s efforts have been further boosted by the establishment of more than 27 Gas Utility Courts in Sindh and Baluchistan, as defined in the Act, to take punitive action against the offenders and serve them punishment commensurate with the type of theft committed.
While on the ground, SSGC continues its relentless drive against gas thieves, the Company’s Corporate Communication Department is regularly running media campaigns in print, electronic and social media as well as through Out of Home branding. The aim is to mobilize the stakeholders about this crime against community so that they too stand with SSGC to combat it by reporting illegal acts of theft. The advertisements carry strong messages, warning the miscreants against unauthorized enhancement of gas loads, installation of the gas compressors and suction booster in industrial units as well as prosecution details of theft miscreants.
To root out what is bad in the society is never easy. Team SSGC is, however, determined to counter gas theft and the inroads it has made during the last several years is a manifestation of its steadfastness against this major misdemeanor. The coming days will see intensification in raids and prosecution of criminals. Another dedicated Police Station is all set to open its doors in Baluchistan for more effective law enforcement. Gas theft is a crime against community and SSGC’s true success to uproot it will be ensured only with a concerted effort from the government, the general public and the media.