Karachi November 11 2024: Sui Southern Gas Company Limited losses decreased for the fourth consecutive year by 1.28 percent to 16.56 percent in FY2022-23 due to implementation of extensive UFG plan.
The Company’s loss significantly decreased from PKR 11.444 billion in FY 2021-22 to PKR 1.601 billion in FY 2022-23.
Sui Southern Gas Company has been undertaking extensive initiatives to improve its bottom-line through vigorous and sustainable reduction in UFG. Targeted efforts in FY 2022-23 contributed to a year-over-year reduction in Unaccounted-for-Gas (UFG), marking the fourth consecutive year of UFG improvement. Company-wide UFG figures were reduced to 51.15 BCF against 59.99 BCF the previous year, and the UFG percentage declined from 17.84 percent to 16.56 percent, reflecting an 8.84 BCF reduction and 1.28 percent decrease in UFG.
Over the period from FY 2018-19 to FY 2022-23, SSGC achieved a cumulative reduction of approximately 21 BCF in UFG, underscoring the Company’s sustained efforts in tackling operational issues.
Continued focus on rationalizing gas purchases at SMS and TBS levels resulted in a significant boost to system optimization, ensuring improved supply to all sectors. In Karachi, an intense UFG reduction effort led to notable success, with single-digit UFG percentage maintained from October 2022 until year-end, culminating in an annual UFG volume reduction of 7 BCF and UFG percentage of 8.28 percent compared to 10.73 percent in the prior year. A comprehensive 3-year plan has been developed to further optimize gas purchases in high-demand areas. In parallel, a master plan for Karachi will help improve pressure, reliability, and supply to industrial areas.
Similarly, Upper Sindh region achieved a 2.8 BCF reduction in UFG, with a UFG percentage decrease from 16.3 percent to 13.3 percent year-over-year. A 3-year UFG Reduction Plan has been implemented for Upper Sindh, focusing on strengthened operational controls and sustainable improvement.
Balochistan remains a priority focus for UFG reduction, where weather and socio-economic conditions pose unique challenges. Although UFG levels remained at 25.9 BCF, the Company has rolled out an aggressive reduction plan aimed at saving 8 BCF in FY 2023-24. This initiative underscores SSGC’s dedication to achieving regulatory compliance and implementing long-term solutions in this region.
