An Interview with Mr Abdul Rashid Lone
Q1: What are your future developments plans?
Ans: During the last fiscal year ending June 30, 2005 the Company has built 500 KM Transmission pipelines ranging in diameter from 10" to 36". Similarly, distribution mains with a total length of approximately 2800 KM have been laid in the eight regions of the Company. A total of 412 Industrial connections, 3500 Commercial connections and 175,000 Domestic connections have been provided in this period.
The Company plans to provide a similar number of new connections during the current fiscal year and the length of distribution mains estimated to be laid will be in excess of 3000 KM. Two major transmission pipelines projects for the Southern Districts of the Punjab and the Southern Districts of NWFP, estimated to cost over Rs. 3.5 billion and Rs. 2 billion respectively, are expected to be inaugurated during the current fiscal year in addition to construction of pipelines for various projects under the Khushaal Pakistan Programme, Tameer-e-Pubjab Programme and Tameer-e-Sarhad programme. Gas supply to Murree will also be inaugurated during July, 2005.
The Company is planning to undertake a major de-bottlenecking programme in its transmission pipeline system including the up gradation of compression system at an estimated cost of Rs. 4.5 billion.
Q2: Pakistan has critical shortage of oil/gas resources?
How best can we meet our growing requirements?
Ans: Natural gas plays a crucial role in Pakistan's economy; meeting about 50% of country's current demand for commercial energy. As of last year, the country's total recoverable gas reserves were estimated at 28 TCF. With the transmission system of the order of 8,810 kms, Pakistan has one of the most extensive gas networks in the region. The demand for gas has been growing at a rapid rate of above 9% over the last five years, to reach nearly 3 BCFD in 2004.
Pakistan's appetite for energy is surging with rapid economic growth. Recent natural gas supply-demand studies indicate future indigenous gas supplies being unable to meet and keep pace with growth in demand.
The country is expected to face a steadily escalating gas shortfall of over 200 MMCFD from 2009 to more than 2,000 MMCFD in 2015. In order to ensure the security of natural gas supply and to meet the increasing demand, the GOP is considering the following options for the import of natural gas.
-- Turkmenistan-Afghanistan-Pakistan (TAP) Gas Pipeline Project
-- Qatar Pakistan (QP) Gas Pipeline Project
-- Iran-Pakistan (IP) Gas Pipeline Project
-- Liquefied Natural Gas (LNG).
Inter State Gas System (Pvt) Limited (ISGSL), a joint venture entity, cosponsored by Pakistan's two major integrated gas utility companies i.e., Sui Southern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) is carrying out project development activities for importing gas into Pakistan.
Q3: What are privatizations plans? What benefits will it bring?
Ans: The Government of Pakistan is keen to privatize SNGPL and is working on a scheme to complete the process during the current fiscal year. The ownership of the Company presently consists of 56% shares held by the Government of Pakistan and GOP controlled Companies whereas 44% of the Company is privately owned. Thus, privatization means selling off 7% of the Government shares to achieve majority private holding with a decision to handover management control to the private sector.
The Company is already operating as a private organization with minimum Government control under an autonomous and a very proactive Board of Directors which is keen to optimize the Company's operations for the benefit of all stake holders. Complete privatization will help the Company to operate in a completely un-encumbered environment to achieve maximum efficiency and to provide the best possible services to its customers and maximum return to its sharesholders.
Q4: What new initiative are being taken to improve customer service?
Ans: The following initiatives have been taken to improve customer services:-
-- 50 Consumer Service Centres have been set up
-- Uniform Telephone No 119 for registration of complaints
-- Training of Emergency Teams.
BILLING ACTIVITY:
-- Monthly Billing based on actual meter reading
-- Random checks by inspectors
-- First bill within sixty days of commissioning
-- 15 days allowed for payment
-- Issuance of duplicate bills at Consumer Service Centres
-- Availability of gas bills on internet Islamabad and Lahore (www.sngpl.com.pk)
-- Timely delivery of bills through courier
-- Mode of payment Cash, Cheque/Pay Order/Demand Draft or through PhoneBanking
-- Increase in Bank branches. (Total number of branches 2008)
-- Payment of gas bills in SNGPL offices. (58)
-- Payment in Post Offices. (28)
-- Cheque Drop box scheme. (35 cash points)
-- E-Commerce banking facilities
-- Rounding off as bills
-- Provision of Sales Meter Stations and Customers
-- Meter Stations (CMS) to industrial consumers on company's account
-- Laying of gas mains from Company's own resources in areas where industrial clusters exist
-- CMS modification charges exempted
-- Policy of gas main laying changed from 100% cost recovery basis to Company's cost where GDS is positive
-- Provision of multiple options to industrial consumers for security deposit.
Q5: Do you think we are making optimum utilization of our gas resources?
Ans: The largest consumer of natural gas in the country is the power sector which produces electricity for Industrial, Domestic and Commercial consumers and the cheap source of fuel is helping the power sector to produce electricity at a lower cost, thereby benefiting all consumers and the population at large.
The 2nd largest consumer of gas is the fertilizer sector which produces Urea at subsidized rates for the agriculture sector which helps to increase agriculture production at a relatively lower cost than would be possible if gas was not sold to this sector.
Pakistan is now the 3rd largest consumer of Compressed Natural Gas (CNG) in vehicles which cuts down on environmental population and also reduces the import bill of liquid fules and provides relief to vehicle owner in the form of cheqper fuel. Gas is also being provided to general industrial consumers and captive power plants installed by the export based textile industry and this makes our industry more competitive in the international market in the present WTO environment.
The gas supply to domestic consumers has been criticized by some people but the fact is that only 18% of the population of the country has access to natural gas as fuel and this is sold to them on a subsidized tariff providing relief to the domestic consumers. The supply of gas to domestic consumers also helps to keep the environment relatively clean and prevents cutting down of forests for fire wood.
YEAR-WISE INCREASE IN SALES (MMCF):
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YEAR Increase in Sale from
Previous Year
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Vol. In MMCF %age
-----------------------------------
1995-96 18,519 10%
1996-97 22,080 11%
1997-98 533 0.23%
1998-99 21,548 9%
1999-00 31,234 12%
2000-01 23,773 8%
2001-02 13,846 4%
2002-03 19,686 6%
2003-04 120,143 35%
2004-05 64,843 14%
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YEAR-WISE INCREASE IN CUSTOMERS:
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Increase from
Previous year
---------------------------------------------
Year Nos Number of
Consumers % age
---------------------------------------------
1993-94 1,102,001
1994-95 1,257,382 155,381 14%
1995-96 1,404,725 147,343 12%
1996-97 1,583,810 134,085 10%
1997-98 1,637,803 98,993 6%
1998-99 1,747,320 109,517 7%
1999-00 1,887,009 139,689 8%
2000-01 1,986,583 99,574 5%
2001-02 2,113,847 127,264 6%
2002-03 2,208,968 95,121 4%
2003-04 2,305,598 96,630 4%
2004-05 2,481,101 175,503 8%
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Q6: The Government in envisaging fast economical development in future? What steps would you recommend to keep pace in energy sector?
Ans: The energy sector is the most crucial sector in a rapidly growing economy like Pakistan and natural gas happens to be the lynchpin of the energy sector as it is not only used directly by the fertilizer sector but general industry and the power sector which in turn then supplies power to industrial, commercial and domestic sectors.
We anticipate a shortage of power over the next four years which can only be met by building Thermal Power Stations based on gas as the experiment with liquid fuel based IPPS in the past has not proved attractive. Thus, in order to meet energy requirements, gas is crucial for the power, fertilizer and industrial sectors.
The most important step to be taken to meet energy deficiency is to import gas as soon as possible to meet immediate requirements. Pakistan also has 2nd largest coal reserves in the world and steps must be taken on priority to gasify the coal and produce synthetic natural gas (SNG) and fertilizer as a by-product to meet the country's long term energy and food requirements. The technology for coal gasification is well tested and is readily available and plants for coal gasification can be set up within the same time frame as that required for import of gas.
Q7: What steps have been taken by your organization to meet social obligations?
Ans: The most obvious social obligation being met by the Company is the subsidy being provided to the domestic and fertilizer sectors which amounts to billions of rupees per annum and results in lower fuel costs for domestic consumers and lower fertilizer cost for the agriculture sector. However, the Company is also making contributions to universities so that it can bear the burden of providing quality education to aspiring students.
A STORY OF SWEAT, TOIL AND DEDICATION:
The people of Murree had a long outstanding demand for provision of natural gas. It was a justified demand which envisaged preservation or environments and development of tourism. The gas would also enhance the quality of life. With growing population of the country and limited recreational places, the number of tourists to Murree was increasing very rapidly.
The ecological system was under threat as wood was being cut mercilessly to meet requirements of fuel. The democratic government, realising the importance of the project, has decided to undertake the project which is being financed jointly by the Federal Government. The Government of Punjab and SNGPL. Sui Northern Gas Pipelines Limited (SNGPL) is commencing a project for supply of natural gas to Murree hills and its adjoining localities.
This project involves laying of 65 km of 12 inch diameter high pressure transmission gas pipeline having a gas carrying capacity of 25 million cubic feet per day. A 12 inch diameter off-take will be provided from 16" diameter Wah Hattar high pressure existing gas transmission line at village Kamra district Haripur.
This gas pipeline will be passing near Kamra, Usman Khattar, Tarnawa, Najafpur, Bharree, Baghpur, Dheri, Pakshahi, Komal Gali, Danna, Firozpur, Barkot, Rupper, Badala and Barkot, Rupper, Badala and Lora. A Sales Metering Station (SMS) is planned to be insalled near Murree in order to provide gas to distribution network of Murree town for domestic and commercial purposes. A brief account of survey, design and construction activities of this pipeline project is as under:
PIPELINE ROUTE SURVEYING:
Numerous route proposals of transmission line for gas supply to Murree were studied in detail and verified through an extensive reconnaissance survey and an optimal route was finalized after detailed analysis by a team of engineers and surveyors of SNGPL. Route surveying mainly consists of ground marking of route, detailed topographical survey, crossings survey, leveling and preparation of maps/drawings etc using state-of-the-art techniques and surveying instruments.
SOIL FORMATION:
Soil formation of this pipeline route consists of clayey soil mixed with gravel and medium pockets of hard rocks on hill crossings and in nullah beds, especially between Tarnawa and Komal Gali. Presence of hard rock has made the construction activities a real challenging assignment for the company. It is envisaged that land sliding in this area will also be detrimental for the pipeline due to steep and unstable slopes.
Such nature of typical terrain/formations with heavy rain fall frequency in the gas pipeline route will develop washouts. Extensive civil protective works are being planned to avoid washouts and land slidings to ensure the safety of buried gas pipeline.
ELEVATION PROFILE:
The off-take point of the pipeline is 1550 ft. high from seal level near village Kamra, district Haripur and its end point acquires the level of 6300 ft. near Murree within a span of 65 km. There are two locations namely Komal Gali (located about midway of alignment) and at end point near Kuldana, where there are major variations in the elevation.
TOPOGRAPHY:
The pipeline route involves five major hill crossings between village Tarnawa and Murree. This gas pipeline is passing along the bed of Harro River which is rocky and one of the difficult parts of the project from the point of the view of construction.
PIPELINE DESIGN:
Transmission pipeline of this project is designed on the basis of code requirements of ASME B31.8. Pipeline hydraulic analysis and pipeline sizing has been carried out keeping in view the present and future population of Murree and new Murree. Pipeline of 0.219 inch and 0.250 inch wall thicknesses with grade API 5L X-70 would be used in this project. This pipeline-wall-thickness will ensure the pipeline safety for a maximum allowable operating pressure of 1235 PSIG. State-of-the-art computer aided design and drafting techniques are being employed in the preparation of pipeline design / drawings by planning & development department of SNGPL.
CONSTRUCTION OF GAS TRANSMISSION PIPELINE:
Sui Northern Gas Pipelines in the past has constructed and completed gas pipeline projects in the rocky terrain of Pirkoh, Quetta and Gurguri, Projects department of SNGPL is undertaking this difficult and challenging project in the history of pipeline construction in Pakistan.
All the construction activities including excavation of trench in hard rocky soil, construction in hard rocky soil, construction of five major hill crossings, fabrication / installation of valve assemblies and sale metering station will be executed by company's engineers and technicians according to international standards and codes.
The project once completed will usher in an era of economic development and environment preservation. It can rightly be claimed that there are few other projects which can be compared with this one in its utility and effects.
SPECIAL CONSIDERATIONS WILL BE GIVEN TO SOCIAL IMPACTS DURING CONSTRUCTION ACTIVITIES.
-- Economically, it is hard decision to construct a 65 km pipe line for a relatively small town.
-- Project Details
-- Transmission Spur - 65 Kms
-- Cost of Transmission Spur - Rs. 512.00 million
-- Distribution Network - 110 Kms
-- Cost of Distribution Network - Rs. 93.65 million
Total Cost of Project - Rs. 605.65 million
-- Commercial Connections - 1,700
-- Domestic Connections - 5,147
-- Population to be benefitted - 44,505
WWF - PAKISTAN LAUDS THE PROVISION OF NATURAL GAS FOR MURREE:
WWF-Pakistan lauds the Sui Northern gas Company for commiting to provide natural gas for Murree. By providing this alternative energy source, the cutting of trees for fuelwood by the local communities will reduce immensely. It is hoped that this facility will be extended to other communities living in the buzzer zones of forest reserve areas so that pressure on the remaining natural forests is relieved.
WWF-Pakistan, being part of the largest network of an international nature conservation organization, lays great emphasis on sustainability of natural resources as they are depleting fast due to overuse of humans. WWF-Pakistan's mission is to help build a future in which humans live in harmony with nature by conserving the world's biodiversity.
The forests of Murree are part of the unique Himalayan forest ecosystem which is under severe pressure due to overuse and ill-planned infrastructure development. Any step to relieve this pressure such as by provision of natural gas is a step in the right direction.
WWF-Pakistan hopes that future plans for pvision of natural gas will also take into account the need to reduce the degradation of natural forests of high ecological significance.
NATURE'S CARE AND CURE THROUGH NATURAL GAS:
Murree the Malika-e-Kohsar is only an hour's drive northeast of Islamabad at an altitude of 2,286 meters. Murree where lofty peaks tower above green pine-covered slopes in one of the most popular summer resorts in Pakistan. Murree spreads along the top of a ridge for about five kilometers.
Murree has grown rapidly over the years where forests are an important resource for people of the area for construction, cooking and heating. Consequently landslides, water contamination and air pollution have increased. The supply of natural gas will have multiple positive impacts to sustain the beauty of the valley.
The principal positive impact of the supply of natural gas in the replacement of the fuel being used by the households. Most of them are using wood and LPG to some extent. Natural gas is a clean burning fuel and will indirectly result in reduced air emissions and cutting of trees, consequently improving ambient air quality in addition to providing a more economical and efficient fuel source.
The decrease in air pollution will revive the beauty of the Malka-e-Kohsar. Economically, it is a hard decision to construct a 65 km pipe line for a relatively small town.
The rational behind this project is to save the environment. Furthermore, the extensive mature forest cover will play a role in reducing the effects of global warning while providing seekers of solitude and natural scenery with places of great beauty.
This project will not just save the forest at Murree but will also improve the watersheds of the Simly and Rawal lake reservoirs, the main supply source of drinking water for Islamabad and Rawalpindi.
Many factors will contribute to the successful completion of the Murree Gas Line through difficult hilly terrain. Among these, Health Safety and Environment (HSE) concerns are very important to ensure the on time completion of the pipeline in a safe manner. It will also ensure the sustainability of the project. During each step of the execution of this project environmental issues will be carefully evaluated and taken care of.
Special considerations will be given to social impacts during construction activities. Land owners will be compensated as per requirements, for the land needed for the Right of Way (ROW) crops or unavoidable trees that have to removed to outside of the ROW. Specific procedures will be adopted to ensure that the negative impacts associated with pipeline-construction are minimal and of short and temporary duration.
SNGPL will strive to maintain contact with major stakeholders, particularly local communities, during all stages of project implementation. This is necessary to create a sense of ownership for the project and to ensure that the community's concerns are responded to at every stage. We will keep communities informed of work schedules and of the nature of work to be undertaken. The historical or cultural interests and any possible sensitive sites (such as source of water) that are located in close proximity to project activities will not be disturbed.
We not only protect our employees and customers, we also care for the nature.