The General Manager Sales, Sui Northern Gas Pipelines Limited (SNGPL) answering to a question in the Corporate Briefing Program at LSE stated that the Un-accounted for Gas loss (UFG) or line loss increased in the past due to conversion of distribution of gas from bulk consumers to domestic consumers. SNGPL has started leakage surveys and modern equipment to detect underground leakage has been deployed. All these efforts have reduced UFG to 11.07per cent in December 2011 as compared to 12.4per cent in June 2011 and the Company plans to reduce it further by June 2012, he added.
Mr. Rehan Nawaz, General Manager Sales and Mr. Sagheer-ul-Hassan, Senior General Manager Audit of SNGPL were addressing the members, investors, analysts & media representatives at the Corporate Briefing Program of the Company organized by the Lahore Stock Exchange. Mr. Sagheer-u-Hassan presented a detail overview of the Company’s operations and its financial performance.
Speaking on the occasion, Mr. Hassan said that the SNGPL is an integrated gas transmission and distribution company which was incorporated in 1963. Now as on September 30, 2011 the Company is serving over 4 million domestic, commercial and industrial consumers with Transmission Pipelines of 7,556 Kilometers and Distribution Mains & Service Lines of 82,988 Kilometers and the number of consumers are expected to register an increase of 278,400 in FY 2011-2012. The overall gas consumption has increased to 581.71BCF over a period of 10 years with major increase in CNG sector to 14.8per cent in 2010-2011 as compared to 0.4per cent in 1999-2000. Further, the consumption by Captive Power has increased to 8.43per cent, he added.
Answering to a question from investors on shortage in supply of gas, Mr. Rehan Nawaz said that during each winter season, the domestic sector consumption increases many folds resulting in a large gap between demand and supply. Since there is a nominal increase in supply, the gap is met through curtailment of gas supply in various sectors. During the current winter months, gas supply has reduced by 125-150 MMCFD where the consumption has increased by 200 MMCFD and the domestic sector is also facing low pressure conditions, he added.
Mr. Aftab Ahmad Chaudhry, Managing Director, Lahore Stock Exchange mentioned that in the current scenario where the liquidity is drying up, high profile companies like Sui Northern Gas Pipelines Limited need to establish investor relations department to meet the informational needs of investors. More information sharing translates good liquidity in stock of the company, Mr. Chaudhry added. He further mentioned that the results of Corporate Briefing Programs are far reaching and LSE platform is available for listed companies to share their performance, managerial efficiency and future plans with existing and potential investors. The GM Audit lauded the efforts of the current management & the directors of the Exchange in introducing such programs for increasing interaction between the investors and companies. The Corporate Briefing Program is an initiative of the LSE to increase market efficiency by removing information disparity in the marketplace. Market leaders are invited through this program to present their company’s performance and future plans to the investment public.
The Lahore Stock Exchange considered the innovation leader in the capital market of Pakistan has taken numerous initiatives in the past that have changed the way the capital market now operates in Pakistan. The Exchange has in the past too focused on increasing investors’ awareness & education level for the betterment of the market. Awareness roadshows, seminars, briefings to economic journalists, Training Institute are some of the initiatives taken in the past in this regard. The Corporate Briefings Program is another step in this direction which has received much deserved praise from the investment community.
