LAHORE (December 14 2006): The process of privatisation of Sui Northern Gas Pipeline Limited (SNGPL) is underway and is expected to be completed by 2007. "We have provided necessary data to the Privatisation Commission and, on our part, we are fully prepared for the privatisation of the company," SNGPL Managing Director A Rashid Lone told media men, here on Wednesday.

Talking about gas supply to industrial sector, he said that so far it has been stopped to textile sector and captive power units, while it would be discontinued to the fertiliser sector by the end of current month. He said that it was beyond control as the domestic gas demand had increased manifold due to winter.

The current gap between demand and supply was 400 mmcf per day, he said, and added that against 2200 mmcf demand, supply was 1800 mmcf per day. If the weather turned further harsh, demand for gas may soar to 2350 mmcf per day, he hinted.

"We are stopping supply to the each sector for 15 days, in rotation," he said out. When asked about line losses, he said that in four years period the company had been able to bring the losses from 12 percent to 6 percent, while the ratio in the world is 4 to 6 percent.

Commenting on the proposed Iran-Pakistan gas pipeline project, he said that both governments were in the process of negotiating the price formula, which is likely to be finalised in a couple of months. If India joined the project, it would be beneficial for Pakistan, "as we will get transit fee from India".

About Turkmenistan-Afghanistan-Pakistan gas pipeline project he said it was the second option as the situation in Afghanistan was not satisfactory.

Copyright Business Recorder, 2006