PC INVITES EOIs FOR PRIVATISATION OF 51% SHARES OF SSGC WITH MANAGEMENT CONTROL

Islamabad, January 4, 2006

The Privatisation commission ("PC") has invited Expression of Interest (EOI) from qualified strategic investors to divest 51% shareholding in Sui  Southern Gas Company Limited (SSGC). SSGC offers significant potential for revenue and earnings growth to an investor with the resources and expertise to operate gas transmission, distribution, wholesale and retail businesses.

SSGC was formed in 1989, following a series of mergers of three pioneering  companies, namely Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. SSGC is Pakistan's leading integrated gas company with a franchise area covering the provinces of Sindh and Balochistan serving more than 1.7 million consumers.

PC has asked the qualified parties interested in acquiring the indicated  shareholding and management control to submit their EOI's along with the required non refundable processing fee including the name and address of the party, the date and place of incorporation and contact details, Experience in the gas sector, Experience in international gas industry development, involvement in the acquisition /operation of gas companies requiring system upgrading and managerial restructuring, Audited financial statements and details of ownership structure.

Parties with relevant credentials and who submit a formal EOI will be provided with a documentation package, including a Request for Statement of Qualification ("SOQ") and Preliminary Information Memorandum. The early  submission of EOIs will allow parties maximum time for completion of their  Statement of Qualification requirements. SOQs must be submitted to the PC no  later than 1500 hrs on March 04, 2006. Earlier PC has invited EOIs for the privatisation of SNGPL on December 13, 2006 with last date to receive EOIs on February 11,2006. A consortium led by Pricewaterhousecopers is advising the GoP on the privatisation of both SNGPL & SSGC.