Federal Minister of Petroleum and Natural Resources visit SSGC
The Ministers and Secretary were given a detailed presentation on SSGC’s operations and ongoing developmental projects by Managing Director, SSGC Zuhair Siddiqui. Chairman Shahid Aziz Siddiqui, DMD (Ops) Rahat Kamal Siddiqui, DMD (CS) Yusuf J. Ansari, CFO Abdul Malik, and other members of senior management were also present during the presentation in Company’s boardroom.
During the presentation, MD explained that import of LNG is Company’s top priority. He highlighted different hurdles and issues being faced by the Company’s management in this regard. Federal Minister gave suggestions and instructions to SSGC management for addressing these issues.
Focusing on other important developmental projects, MD SSGC informed that in Balochistan, Zarghoon Gas Pipeline Project will be completed during September 2013 and the cost incurred would be Rs. 1.458 billion. After completion of the said project around 25 mmcfd gas will be added in SSGC’s system that will be provided to Quetta city. The project consists of around 64 km long pipeline network.
The MD elaborated on other gas supply projects, which were completed during recent past or are nearing completion. He said that Jhal Magsi, Sinjhoro, Kunnar Pasakhi, Mehar, Rehman and Nar Baghla gas supply projects were completed against a cost of Rs. 3.432 billion, comprising of 291 km long pipelines that added/will add around 235 mmcfd gas in SSGC’s system.
Managing Director informed the guests that for the first time during the last 5 years, Company has succeeded in bringing down its UFG by 2 %. The Managing Director also explained the progress on SSGC’s Natural Gas Efficiency Project (NGEP). He anticipated that after completion of this important project, the utility will be in a position to bring down its ‘Distribution Line Losses (UFG)’ to 6 % per annum in 2017, from the current 10.8 %. He was hopeful that the initial activities for the project will start in September 2013. He said that Company has already sent the Accounts (FY 2012-13) to OGRA for its approval and subsequently it is anticipated that our financial position will improve accordingly this year.
The Federal Minister was also informed by the Managing Director about the huge receivables of Rs. 50.53 billion from KESC and Rs. 16.32 billion from Pakistan Steel Mills which are due since long. MD said that KESC is not acknowledging the late payment surcharge that amounts to Rs. 17.83. He elaborated that SSGC is supplying around 220 mmcfd gas to the power utility without any ‘Gas Sales Agreement (GSA). He requested the Ministers and Secretary to facilitate SSGC in recovering these long due outstanding from both the organizations. The Federal Minister was also briefed about another Rs. 10 billion recoverable amount from Federal Bureau of Revenue (FBR). Mr. Abid Saeed assured to soon convene a meeting in Islamabad to solve this issue. The MD said that the cash liquidity position of the company has disturbed considerably due to these long due receivables. Federal Minister praised SSGC’s management for ably managing the Company functions despite of such adverse financial conditions.
Later the Minister and Secretary visited different departments that include 1199 Contact Center, IT’s Geographical Information System (GIS) and Data Storage Centre and expressed their satisfaction over the smooth management. MD thanked the Ministers and Secretary for their visit to the utility and presented them Company souvenirs.
S. Nasreen Hussain
Deputy General Manager
Corporate Communications
For any further information or clarification please contact;
Inayatullah Ismail
Manager Media Relations
Tel: (+92 21) 9902 1773
Mobile: 0322-2225159