Latest news with #SuiSouthernGasCompany
Express Tribune
4 days ago
- Business
- Express Tribune
'Special relief in power tariff still in place'
A special relief involving a Rs7.41 per unit reduction in electricity price, as announced by Prime Minister Shehbaz Sharif, is still in effect despite a rising cost of electricity. According to a statement issued on Saturday by the Ministry of Energy, the cost of electricity generation is increasing due to the lowest hydropower generation in the country's history in recent months and the reliance on expensive power plants running on alternative fuels. "In view of this decline in hydropower production, the Ministry of Energy has issued directives to all provincial governments and relevant federal ministries to enforce Energy Efficient Building Codes, so that electricity bills can be reduced during periods of extreme heat and cold." In addition, it said, the government is preparing to offer energy-efficient fans — which consume up to 70% less electricity — on easy interest-free installments, which will help in replacing old fans and significantly lowering electricity bills. Federal Minister for Energy Ali Pervaiz Malik on Friday stated that power-generating companies are not utilizing imported gas as per agreements and resultantly expensive gas is being sold to domestic consumers at subsidized rates, leading to a rise in circular debt. "The power companies are violating their agreements, which is increasing the liabilities of the national gas importing companies," said Malik, while speaking to the media at the head office of the Sui Southern Gas Company (SSGC). Malik highlighted that the government's success in reducing electricity prices and maintaining current petrol and diesel prices is a significant achievement. However, relief in the electricity sector has become a burden on the petroleum sector.
Express Tribune
5 days ago
- Business
- Express Tribune
Electricity focus hurts balance
Listen to article Federal Minister for Petroleum Ali Pervaiz Malik has stated that the overemphasis on the power sector in recent years has undermined other vital components of Pakistan's energy landscape, particularly the gas and petroleum sectors. During a visit to the Sui Southern Gas Company (SSGC) head office in Karachi, Malik remarked that while electricity remains a critical component of national energy planning, the persistent neglect of the petroleum and gas sectors is aggravating existing problems, most notably the growing circular debt. He revealed that power generation companies had committed to purchasing six LNG cargoes but are now failing to honour those agreements, leaving around 600 million cubic feet per day (mmcfd) of imported RLNG unused. This failure, he cautioned, is leading to an accumulation of receivables at Pakistan State Oil (PSO) and contributing to a rise in circular debtcontrary to International Monetary Fund (IMF) directives aimed at reducing it. Malik disclosed that the government is considering borrowing from banks to cover gas-sector dues, following a financing model already used in the power sector. He also raised the alarm over rampant diesel smuggling, calling it a "cancer" within the petroleum industry. To counter this, the ministry has launched a wide-ranging digitisation initiative. All trucks transporting petroleum products will be brought under a digital monitoring system, and every unloading point will be officially recorded. The digitisation drive will also cover petrol pumps across the country, where manual nozzlesfrequently used for fuel theft or the sale of smuggled fuelwill be replaced with digital meters linked directly to the Federal Board of Revenue (FBR). To finance this upgrade, the petroleum ministry is preparing a proposal for the Economic Coordination Committee (ECC) to approve an additional fee on petroleum products. Though Malik did not specify the fee amount, sources suggest it may be Rs1.35 per litre for oil marketing companies and Rs1.40 for dealers. On the issue of new residential gas connections, Malik said a final decision would be made after consultation with Prime Minister Shehbaz Sharif. He noted that the gas pipeline infrastructureparticularly in Karachiis outdated, with some pipelines over 40 years old. SSGC's network alone spans 55,000 kilometres, underscoring the magnitude of the challenge. Malik also discussed plans to improve energy trade with the United States by exploring petroleum imports. A special committee under the finance minister is reviewing the proposal. He concluded his Karachi visit with a tour of Pak-Arab Refinery Limited (PARCO), where he was received by Managing Director Irteza Ali Qureshi and senior company officials.
Express Tribune
5 days ago
- Business
- Express Tribune
Power companies violating agreement: minister
Federal Minister for Energy Ali Pervaiz Malik has stated that power-generating companies are not utilizing imported gas as per agreements and resultantly expensive gas is being sold to domestic consumers at subsidized rates, leading to a rise in circular debt. "The power companies are violating their agreements, which is increasing the liabilities of the national gas importing companies," said Malik, while speaking to the media at the head office of the Sui Southern Gas Company (SSGC) on Friday. The minister revealed that smuggled fuel is spreading like a "cancer," and to curb it, petrol pumps are being registered and digital nozzles installed. "The Oil and Gas Regulatory Authority (Ogra) will become fully digital in two to three months, enabling complete monitoring of fuel supply and sales from refineries to petrol pumps," he said, adding that 85% of moving stock digital tracking has already been completed. The energy minister said no final decision has been made yet to increase the Petroleum Development Levy (PDL), and its enforcement on prices has not taken place for now. He emphasized the need for a coherent and unified energy policy, suggesting that all energy sources must be evaluated on equal standards. Malik highlighted that the government's success in reducing electricity prices and maintaining current petrol and diesel prices is a significant achievement. However, relief in the electricity sector has become a burden on the petroleum sector.
Business Recorder
13-05-2025
- Business
- Business Recorder
Complete turnaround: SSGC reports Rs8.3bn profit in FY24
The Sui Southern Gas Company (SSGC) made public its accounts for the year ended June 30, 2024, announcing a massive consolidated profit of Rs8.3 billion during the period. The profit is a complete turnaround from a loss of Rs836 million incurred by SSGC in the same period of the preceding year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday. The company's earnings per share (EPS) were recorded at Rs9.41 in the 12 months compared to a loss per share (LPS) of Re0.95 in the same period of the previous fiscal year. The profit was driven by a massive gain made by the utility on account of other income. SSGC's net sales (after tariff adjustments) rose to Rs465.8 billion in July-June 2024 compared to Rs451.5 billion in the same period the previous year, an increase of over 3%. Complete turnaround: SSGC reports Rs4.5bn profit in July-Sept quarter On the other hand, the company's cost of sales increased to Rs455.5 billion, a jump of nearly 8%. Resultantly, the company, which is involved in the transmission and distribution of natural gas in Sindh and Balochistan, posted a gross profit of Rs10.4 billion, a decrease of over 63% as compared to a gross profit of Rs28.2 billion in SPLY. On a consolidated basis, the company saw its other expenses stand at Rs32.2 billion compared to Rs43.2 billion, a decline of nearly 26%. On the other hand, SSGC's other income rose to Rs46.97 billion, compared to Rs23.28 billion in SPLY, up over 101%. Consequently, SSGC's profit before finance cost and taxation clocked in at Rs25.1 billion in FY24, as compared to an operating profit of Rs8.2 billion in SPLY, an increase of 206%. The cost of finance increased to Rs13.4 billion in the period ended July 30, 2024, compared to Rs8.6 billion in SPLY, a jump of over 55%. During the period SSGC paid only Rs2.4 billion in taxes.
Express Tribune
06-05-2025
- Business
- Express Tribune
Uninterrupted gas supply may require tariff increase, says SSGC
Listen to article Sui Southern Gas Company (SSGC) officials hinted an increase in gas prices as they suggested that domestic gas prices may need to be increased if uninterrupted supply and an end to load-shedding are to be ensured, Express News reported. The remarks were made during a meeting of the Senate Standing Committee on Petroleum, where issues of low gas pressure and persistent outages were discussed in detail. During the session, the Managing Director of Sui Northern Gas Pipelines Limited (SNGPL) explained that the ongoing load-shedding crisis is largely driven by reliance on imported Liquefied Natural Gas (LNG). He stated that only 45% of the country's gas demand is currently being met through domestic production, while the remaining 55% is being fulfilled through imports. Efforts are currently underway to restore supply in Lahore, the MD said, adding that complaints raised by Senator Kamil Ali Agha would be addressed on a personal basis. The committee was informed that during the month of Ramadan alone, over 25,000 consumer complaints were received regarding gas issues. In the past year, a total of 132,376 complaints about low pressure were logged, with more than 131,000 reportedly resolved. The SNGPL MD assured lawmakers of continued efforts to improve the complaint response system. Following the briefing, the Senate committee concluded discussions on public complaints related to gas supply, considering the matter resolved for the time being. Petroleum Minister Ali Pervaiz Malik also addressed the meeting, acknowledging that the petroleum sector received less attention over the past year due to a heightened focus on the power sector. He noted that local gas consumption has been steadily declining, while imported LNG is now being used even for domestic stoves. The minister also admitted that policy implementation regarding oil refineries is still pending, though he emphasised that the minerals sector is seeing substantial foreign investment. Meanwhile, Director General of Minerals briefed the committee on the Reko Diq project, stating that production is expected to begin by 2028. The project has a projected lifespan of 37 years and is estimated to generate a cash flow of $70 billion.
