Karachi December 11 2023: Sui Southern Gas Company Unaccounted for Gas losses increased to 53.21% in the province of Balochistan, according to company report.
Sui Southern Gas Company demonstrated reduction in Unaccounted for Gas (UFG) in Karachi and Upper Sindh, maintaining levels of 11.2 % and 16.26 % respectively. However, the high UFG remained in Balochistan Region i.e. of 53.21%, owing to the region’s distinctive challenges.
Overall, UFG determined by OGRA remained at 17.84 % during FY 2021-22. However, the Company is contesting OGRA’s determined numbers in its motion for review, and if successful, the UFG figure of SSGC would drop to 15.6%.
This circumstance, coupled with natural gas depletion, substantially escalated operational costs and the dollar-rupee parity surge led to increased Weighted Cost of gas (WACOG) further contributing to the year’s losses. These challenges were beyond the Company’s control.
During Financial Year FY 2021-22, the Company recorded a Net Loss after Tax of PKR 11.4 billion after incorporating major disallowances and financial costs. In FY 2021-22, SSGC was allowed a Return of PKR 15.3 billion. Against the allowed return, OGRA made disallowances on account of UFG for PKR 23.4 billion, PKR 1.7 billion on account of Provision made against expected credit loss in compliance of IFRS 9.
SSGC has been vigorously pursuing OGRA through the Ministry of Energy (Petroleum Division), as well as through Islamabad High Court to allow Actual UFG on RLNG business in Distribution Network. As a result of IHC restraining Order, OGRA has allowed Actual UFG on RLNG Distribution business.
Company is working to reduce UFG losses by separating industrial customers from the domestic networks has been continued to identify and implement viable modifications to achieve optimized operating pressure. Special focus has been placed upon improving the measurement accuracy through monitoring and resolution of under / over load meters; timely replacement of customer meters and extensive engagement with world renowned measurement consultant (i.e. M/s. Kelton, UK) to review SSGC’s Point of Delivery (POD), Sales Meter Stations (SMS) and Customer Meter Stations (CMS). Recommendations have been shared and are being implemented.
