INP-WealthPk

Pakistan spending Rs113.8b on upgrading gas transmission system

January 05, 2023

The two state-owned gas companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), are spending over Rs113.8 billion on the upgradation of gas transmission and distribution systems in their respective operational areas during the current fiscal year (2022-23).

According to information available with WealthPK, the gas companies have planned to invest Rs27.669 billion on transmission projects, Rs77.484 billion on distribution projects, and Rs 8.746 billion on other projects bringing the total investment to Rs113.899 billion during the fiscal year 2022-23.

The SNGPL has planned to lay 9,605 kilometers transmission and distribution pipelines, while the SSGC will lay 1,102 kilometers pipelines to improve their efficiency and smooth supply of gas to domestic, industrial, and commercial consumers.

The available statistics indicate that Pakistan has an extensive gas network with more than 13,513 kilometers transmission, 155,679km distribution, and 41,231km service gas pipelines to cater to the requirement of millions of consumers. The number of consumers has increased from 10.3 million to more than 10.7 million across the country.

The companies are also executing at least three strategic projects to supply gas to two special economic zones (SEZs) and an industrial park in their respective areas to boost industrial production.

For this purpose, the government has allocated funds amounting to Rs 431.45 million in the Public Sector Development Program (PSDP 2022-23) to advance three ongoing projects—one each in Balochistan, Sindh, and Punjab provinces.

The SSGC is laying a pipeline to supply 10 MMCFD (metric million cubic feet per day) re-gasified liquefied natural gas (RLNG) to Bostan Special Economic Zone (SEZ) in Balochistan with an allocation of Rs100 million for the current fiscal year, and a dedicated line to provide 13 MMCFD RLNG to Bin Qasim Industrial Park, located in Karachi city of Sindh, with Rs74.71 million funds.

Similarly, the SNGPL is carrying forward a project to supply 40 MMCFD gas/RLNG to Allama Iqbal Industrial City, an SEZ in Faisalabad city of Punjab, for which the government has earmarked Rs256.74 million funds in the Public Sector Development Program PSDP 2022-23.

Credit : Independent News Pakistan-WealthPk