Sui Northern Gas Pipelines Limited (SNGPL)
 
Introduction

The Privatisation Commission began soliciting Expressions of Interest for SNGPL on 14 December 2005.  The requirements that a company must present to the Commission in order to register its interest are described in the EOI advertisement [insert hyperlink to EOI].  The Statement of Qualification from Potential Bidders must be received by the Commission no later than 11 February 2006 at 3 PM.

Overview

SNGPL was incorporated in 1963 as a private limited company and was converted to a public company in 1964. SNGPL is the largest gas transmission and distribution company (2.5 million customers) in Pakistan, with a franchise area comprising the provinces of Punjab and North West Frontier Province (NWFP). The company received a 30 year license from OGRA beginning March 25, 2002 to carry on the regulated activities of transmission, distribution and sale of natural gas in the provinces of Punjab and NWFP. This license gives exclusive right to SNGPL to distribute and sell natural gas to its existing customers who contracted with it on or before 30,June  2005.

The SNGPL transmission system extends from Sui in Balochistan to Peshawar in NWFP comprising 6,121 kms of high - pressure pipeline ranging from 6 inch to 36 inch in diameter. The distribution activities covering 728 towns along with adjoining villages in Punjab & NWFP are organized through 8 regional offices. The company sold 537,086 million cubic feet (MMCF) of gas in FY 2004-2005 to over 2.5 million industrial, commercial and domestic customers in these regions through a distribution network of over 42,192 km.

SNGPL has an authorised capital of Rs. 15,000 million. The Government and Government controlled institutions shareholding is 54% as of January 2004 with the remaining 46% held by the private sector.  Presently, SNGPL’s Board has 14 members drawn both from public and private sectors.

Company Objectives

The company is committed to providing:

 

Figure: Sui Northern Gas Pipeline System

 

Future Outlook

The company plans further improvements to its system including adding 1,045 km of transmission lines to eliminate capacity constraints which impede meeting increasing gas demand downstream of Multan for Lahore, Faisalabad and Gujranwala regions. The distribution network and supply mains are also being extended by 15,042 km in the next five years.

The company is extending its network to Murree Hills, Southern districts of NWFP and Punjab with a total capital cost over Rs. 5 billion. The company is planning to complete these projects in NWFP and Punjab during the next 3 to 5 years.  The company also plans to replace old lines, which have outlived their useful life, revamping of compression facilities, establishment of customer services points, proper training of manpower, consumer facilitation for payment of monthly bills and catering for the industry’s progress to facilitate national annual growth of 8%. Moreover, the company is introducing the Uniform System of Accounts prescribed by the Regulator for the industry.

Other initiatives to improve customer services, operational efficiency, organisation, health, safety and environment include the following:

·         SNGPL has established an IT department for introducing a computerized system to ensure that consumers are provided connections on turn and merit basis. The company is also computerizing its customer service records so that consumer’s complaints are attended promptly and rectification work monitored.

·         The Management is constantly endeavouring to improve the technical competence of employees in various fields of its activity for optimum results.

·         The company is establishing a more effective Health Safety and Environment management system to maintain its image as a responsible corporate citizen in a community with increasing HSE awareness.

Customer Base

SNGPL’s customer profile is as follows:

By Number (as at 30 June 2005)

Domestic

 2,437,541

Commercial

      41,358

Industrial (inc. power and bulk supply)

        3,271

Total

 2,482,170

By Sales Volume (for 2004-05 in MMCF)

Domestic and Commercial

132,553 equivalent to 363 MMcfd

Industrial (inc. power)

404,533 equivalent to 1,108 MMcfd

Source: SNGPL Annual Report


Significant Financial Information for the Past Ten Years
 

 

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

 

---------------------------(Rupees in million)----------------------------

Gas sales

84,710

64,276

45,649

42,005

36,522

26,570

20,577

18,739

17,354

14,181

Gas Development Surcharge

(1,333)

(70)

(3,189)

(4,084)

(2,443)

(1,020)

(1,666)

985

1,919

(103)

Cost of gas sold

71,192

52,627

31,349

28,550

24,849

16,627

11,088

12,329

12,598

9,069

Operating cost excluding depreciation

5,642

5,345

  4,997

4,080

3,844

3,581

2,484

2,522

2,573

1,778

Financial charges

913

968

  1,531

1,398

1,441

2,717

3,463

3,258

2,353

1,580

Provision for taxation

1,525

1,366

  1,193

877

993

838

385

328

144

351

Profit after tax

2,754

2,297

2,014

1,887

1,337

527

426

385

500

415

EPS - Basic (Rs.)

5.52

4.60

4.03

3.78

2.68

1.21

1.13

1.17

-

-

Cash Dividend (%)

30

25

22

20

17

-

-

-

-

-

Bonus Shares

-

-

-

-

-

6.67:1

6.67:1

6.67:1

6.67:1

6.67:1

Revenue reserves

7,368

5,861

 3,564

2,649

1,760

1,924

1,963

2,030

2,073

1,944

Long term loans outstanding

      Foreign

2,536

2,992

  3,414

3,805

4,168

4,526

4,881

5,010

4,011

3,668

      Local

4,681

4,224

  3,712

4,507

5,198

2,230

5,015

4,566

4,606

4,224

      Banking companies

3,473

5,036

  5,471

4,254

2,212

2,899

2,395

3,089

2,449

2,271

Non-current assets

40,722

37,173

33,774

30,527

29,216

29,360

29,580

29,390

27,024

22,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational Information

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

 

 

 

 

 

 

 

 

 

 

 

Mains

Transmission (Km)

6,121

5,776

 5,759

5,405

5,122

5,217

5,112

4,920

4,687

4,243

Mains and Services

 – Distribution (Km)

42,192

38,284

35,814

34,093

32,825

31,477

29,954

28,661

26,848

24,226

Gas Sales (MMCF)

537,086

452,338

341,643

321,957

308,111

284,338

253,104

231,556

231,023

208,943

No. of employees

7,168

7,329

 7,448

7,599

7,703

7,802

7,950

8,138

8,276

7,270

 

 

 

 

 

 

 

 

Key Contacts

For further information please contact the following representative:

Mr. Agha Waqar Javed
Consultant
Privatisation Commission
5-A, Constitution Avenue
Islamabad, Pakistan
Phone: (92-51) 9205146
Fax: (92-51) 9203076
E-mail: aghawaqar@privatisation.gov.pk
 
 

For further company details please visit www.sngpl.com.pk