SNGPL to invest over Rs 50 billion in five years

Islamabad: The Sui Northern Gas Pipeline Limited (SNGPL) has finalised a plan to inject Rs 10 to Rs 12 billion annually in the system over the next five years to expand the base and improve the services. This was stated by SNGPL Managing Director Abdul Rashid Lon while talking to a private TV channel.

He said that 24 inches pipeline was being replaced with 36 inches from Multan to Sahiwal at a cost of Rs 12 billion to meet the needs of power houses and industrial areas near Lahore. Moreover, Kohat to Peshawar pipeline of 24 inches would be completed in June 2008 at a cost of Rs 3 billion.

He said currently 20 companies, including locals are busy in exploring gas and oil all over the country. The country has resources of around 33 trillion cubic feet of gas sufficient for next 23 years. The biggest reserve of around 10.3 trillion cubic feet gas is at Sui (Balochistan).

In Gurgery field located at Karak (NWFP), the reserves are also significant perhaps second largest after Sui, he added. Efforts are under way to provide maximum population the gas facility. So far, only 23 percent population was enjoying the facility.

Regarding mushroom growth of compressed natural gas (CNG) stations, he said the government was considering restricting it. In future, gas would be provided to CNG stations in areas where pipeline of six inches passes. The SNGPL has devised a plan to gradually reduce line losses up to 6 percent. Whereas Ogra has given the target to restrict the line losses to 5.4 percent. Last year, the company's line losses were 6.7 percent, he said.

About Iran-Pakistan-India (IPI) gas pipeline project, he said price mechanism has already been fixed. He said SNGPL has decided to urge domestic consumers to ensure judicious use of gas aimed at ensuring maximum supply of gas to industries. Domestic consumers have been urged to avoid or restrict use of gas heaters and geysers.

The people should use gas only for cooking purposes and conserve this precious national asset. Responding to a question, he said the Company was self-sufficient and meeting its expenditures by generating resources. It has not borrowed a single penny from the World Bank for the last six years. It has invested about $600 million through its own resources and local borrowing.