PC ASKS SNGPL & SSGC TO REVALUE ASSETS
 

Islamabad, April 5, 2010

The Privatisation Commission has asked the management of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) to conduct revalue exercise of their companies to assess up gradation requirements of both the companies and to take measures for value addition in these companies prior to take forward these transaction to the market for privatisation. It was decided in a meeting chaired by Mr. Shahab Khawaja Federal Secretary Ministry of Privatisation here today.

He said that the government intended to increase the profitability of both entities and to safeguard the interests of the consumers and the investors by increasing their capability by addressing the issues being faced by the companies.

The meeting was informed that currently the gas distribution network was being expanded in Baluchistan, Sindh and Tribal areas. Presently 70 % of gas being produced by Sindh and Punjab and 20 % by Baluchistan and Frontier is being transmitted to the consumers. SSGC has pipeline distribution network of 35000 km length.

SNGPL has around Rs.31 billion projects in hand with Rs.20 billion company’s share and Rs.11 billion allocated by GoP. Rs. 6.8 billion provided by the GoP has been spent while remaining Rs.4.2 billion is available with the company for various projects. SNGPL has to spend approximately Rs.18.1 billion from own sources or from find already utilized else where on these schemes. The company has completed projects worth Rs.8.7 billion while remaining projects worth Rs.22.3 billion are outstanding.

The representatives of SNGPL, SSGC made presentations regarding their performance and ongoing projects while the officials of OGRA, Ministries of Petroleum, Natural Resources, Finance and PC attended the meeting.