Latest news with #SSGC
Express Tribune
a day ago
- Business
- Express Tribune
Gas utility says not at fault for dug up roads
An inter-ministerial meeting decided that SSGC should hand over required PSM land to the new LNG terminal developers. PHOTO: rEUTERS The Sui Southern Gas Company (SSGC) has disbursed Rs11.9 billion to the Karachi Metropolitan Corporation (KMC) and various Town Municipal Corporations (TMCs) for road-cutting and rehabilitation during a period from July 2024 to June 2025. The gas utility was under fire from political and civic circles for digging up roads for laying pipelines, however, SSGC sources said that the company had made timely disbursment of the mandatory road cutting charges. It was the reposnsiblity of the matropolitan and town corportations to utilise these funds in a justified manner, they said. According to the data, released by the SSGC, the gas utility made the highest payments of Rs3.55 billion to TMC North Karachi and TMC North Nazimabad. TMC Model Colony received the second-highest payment of Rs2.10 billion. Other payments included Rs1 billion to TMC Lyari, Rs7.3 million to TMC Jinnah, and Rs6.2 million to TMC Malir. The data further revealed that TMC Saddar and Chensar each received Rs260 million, while TMC Landhi was paid Rs210 million. The SSGC paid Rs490 million to the KMC for road-cutting and restoration works. The lowest amount of Rs0.227 million was paid to TMC Gulshan. Despite these massive disbursements totaling over Rs11 billion, the roads across Karachi remain in disrepair. Interestingly, SSGC never issued even a single protest letter to any TMC over their failure to restore the roads, nor did its legal department sign any binding agreement before releasing such a huge amount. Sources further disclosed that SSGC did not obtain any formal assurance from TMCs that the roads would be rebuilt after payments. However, due to the public outrage following the recent downpours, SSGC has now initiated the process of drafting protest letters to KMC and the concerned TMCs, questioning why roadworks have not been completed despite receiving the huge payments. SSGC insiders expressed concern, saying, "If the company aggressively protests or takes legal action, it may face complications in acquiring road-cutting permissions in the future from these municipal bodies."
Business Recorder
5 days ago
- Business
- Business Recorder
Domestic consumers: Pakistan govt hikes gas fixed charges
ISLAMABAD: Federal government has approved increase in the fixed charges for domestic gas consumers of both gas companies (SNGPL/ SSGC) by Rs150 (protected) and Rs400 (non-protected) effective from July 1, 2025. With an average 10 percent tariff hike will applicable to the power sector, bulk consumers, and general industry (process). The Economic Coordination Committee (ECC), on Friday, approved the summary submitted by the Petroleum Division, seeking approval for a revised natural gas pricing structure for the fiscal year 2025–26. The ECC considered the proposed adjustments in energy sector tariffs and decided to maintain gas prices to protect household consumers with only fixed charges re-adjusted in domestic sector to recover the asset costs. It also allowed price of gas for bulk consumers, power plants operating on natural gas and industry to be increased by an average value of around 10 percent. SNGPL, SSGC: Weighted average price of imported RLNG cut slightly The committee approved a raise in gas tariff to bulk consumers from Rs2,900 per mmbtu to Rs3,075 per mmbtu. For power sector tariff has revised from Rs1,050 per mmbtu to Rs1,313 per mmbtu. For general industry (process) tariff was revised from Rs2,150 to Rs2,350 per mmbtu. The minimum bill for protected and non-protected consumer will be calculated at the first tariff slab of each category. Power tariff would also be stand revised for PPL's gas supply to Guddu, and Mari Energies' gas supply to Foundation Power. According to the summary submitted for consideration of ECC, it argues that only room to revise prices is available in the domestic sector slabs, wherein, a huge cross-subsidy is involved which is estimated at Rs168 billion per annum at current prices. Government is already engaged with IMF under the resilience sustainability facility to replace cross-subsidies with direct or budgeted subsides in commensuration with income levels of the domestic consumers under the BISP. As per the reform measure, the framework for replacing the cross-subsidy would be developed by June 2026 following the model being pursued by Power Division which is expected to be rolled out in 2027. Petroleum Division worked out option whereby revision in the gas tariff, as well as, fixed charge has been proposed; however, in order to lower the impact of price revision in domestic sector, the revision in bulk domestic, industry (process) and power sector, which is unchanged since February 2023, has also been approved. The revisions in gas tariff are estimated to meet Rs41 billion revenue deficit of SNGPL and it would also generate Rs31 billion surplus for SSGC which would be utilised to meet prior revenue shortfall of SSGC which are around Rs565 billion. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
SSGC organises HSE conference
KARACHI: In an innovative initiative to foster inter-company collaboration on workplace safety and sustainability, Sui Southern Gas Company (SSGC) organised its first-ever health, safety, and environment (HSE) knowledge-sharing conference titled 'SafeFuture – HSE for a Sustainable Tomorrow' at its head office auditorium. The event, hosted by the company's HSE&QA Department, brought together experts and senior officials from five major organisations; PSO, PPL, PARCO, MIDAS Safety, and SSGC, to discuss digital transformation in HSE processes, AI-driven safety solutions, and best practices for cultivating a proactive safety culture. In his opening remarks, Saeed Rizvi, Deputy Managing Director (Operations) at SSGC, underscored the critical importance of integrating HSE into core business operations, particularly amid the company's ongoing 2,500-kilometre gas pipeline rehabilitation project. He noted that initiatives like SafeFuture serve as valuable platforms for mutual learning and industry-wide improvements. Highlighting the evolution of SSGC's HSE framework, Madni Siddiqui, Senior General Manager (Upper Sindh and Balochistan), reflected on the department's journey from modest beginnings to a technology-driven unit dedicated to continuous improvement. Delivering a presentation on SSGC's digital shift, Shamail Haider, Acting General Manager (HSE&QA), emphasised the importance of adopting a preventive mindset in workplace safety. He shared insights into the company's transition from a paper-based system to a fully digital HSE web portal. Representatives from other leading energy firms also shared case studies and AI-integrated safety strategies. Speakers included Muhammad Haris of PSO, Abid Hussain of PPL, Jawad Hussain of PARCO, and Syed Muhammad Farooq Ahmed and Aamna Khalid from MIDAS Safety. SSGC's Group General Manager HSE&QA, Shahbaz Islam, presented 'Safety in Action: Building a Culture, not just Compliance', detailing the company's best practices and real-world HSE case studies. He lauded the collaborative spirit of participating companies that contributed to the conference's success. Adding a wellness dimension to the proceedings, fitness expert Yogi Wajahat conducted a session offering practical tips for enhancing health and safety at worksites through physical and mental well-being. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Domestic consumers: Govt hikes gas fixed charges
ISLAMABAD: Federal government has approved increase in the fixed charges for domestic gas consumers of both gas companies (SNGPL/ SSGC) by Rs150 (protected) and Rs400 (non-protected) effective from July 1, 2025. With an average 10 percent tariff hike will applicable to the power sector, bulk consumers, and general industry (process). The Economic Coordination Committee (ECC), on Friday, approved the summary submitted by the Petroleum Division, seeking approval for a revised natural gas pricing structure for the fiscal year 2025–26. The ECC considered the proposed adjustments in energy sector tariffs and decided to maintain gas prices to protect household consumers with only fixed charges re-adjusted in domestic sector to recover the asset costs. It also allowed price of gas for bulk consumers, power plants operating on natural gas and industry to be increased by an average value of around 10 percent. SNGPL, SSGC: Weighted average price of imported RLNG cut slightly The committee approved a raise in gas tariff to bulk consumers from Rs2,900 per mmbtu to Rs3,075 per mmbtu. For power sector tariff has revised from Rs1,050 per mmbtu to Rs1,313 per mmbtu. For general industry (process) tariff was revised from Rs2,150 to Rs2,350 per mmbtu. The minimum bill for protected and non-protected consumer will be calculated at the first tariff slab of each category. Power tariff would also be stand revised for PPL's gas supply to Guddu, and Mari Energies' gas supply to Foundation Power. According to the summary submitted for consideration of ECC, it argues that only room to revise prices is available in the domestic sector slabs, wherein, a huge cross-subsidy is involved which is estimated at Rs168 billion per annum at current prices. Government is already engaged with IMF under the resilience sustainability facility to replace cross-subsidies with direct or budgeted subsides in commensuration with income levels of the domestic consumers under the BISP. As per the reform measure, the framework for replacing the cross-subsidy would be developed by June 2026 following the model being pursued by Power Division which is expected to be rolled out in 2027. Petroleum Division worked out option whereby revision in the gas tariff, as well as, fixed charge has been proposed; however, in order to lower the impact of price revision in domestic sector, the revision in bulk domestic, industry (process) and power sector, which is unchanged since February 2023, has also been approved. The revisions in gas tariff are estimated to meet Rs41 billion revenue deficit of SNGPL and it would also generate Rs31 billion surplus for SSGC which would be utilised to meet prior revenue shortfall of SSGC which are around Rs565 billion. Copyright Business Recorder, 2025
Business Recorder
18-06-2025
- Business
- Business Recorder
Iran-Israel conflict: Govt should make urgent arrangements for LPG imports
ISLAMABAD: LPG Distributors Association Chairman Irfan Khokhar warned that the ongoing Iran-Israel conflict could lead to a severe LPG crisis across Pakistan if storage capacity is not immediately increased. According to Khokhar, Pakistan faces a historic LPG shortfall. With borders closed due to the Iran-Israel war, he urged the government to make urgent special arrangements for LPG imports. Otherwise, Pakistan will experience a significant LPG shortage. This potential shortage has also activated the LPG mafia, which could drive up the price of a domestic LPG cylinder to PKR 5,000 to PKR 6,000 or more. The per-kilogram price is expected to reach PKR 450 to PKR 500, while commercial cylinders could hit PKR 20,000 to PKR 23,000. Pakistan's daily consumption is 6,000 metric tons, while monthly local production stands at 60,000 to 70,000 metric tons. Khokhar highlights that the LPG terminals at Port Qasim, SSGC and EVTL, have a combined storage capacity of only 6,500 metric tons. The total storage at Port Qasim is 13,000 metric tons, which is insufficient for Pakistan's needs. In contrast, a country like Bangladesh has an LPG storage capacity of 300,000 metric tons. He emphasizes the urgent need to increase Pakistan's LPG storage. He advises all distributors and shopkeepers to keep their stocks full. Copyright Business Recorder, 2025
