SSGC faces UFG losses of 35 to 40% per year

KARACHI: Sui Southern Gas Company (SSGC) has been facing Unaccounted for Gas (UFG) losses of 35 to 40 per cent every year, involving sabotage of gas pipelines along with theft and other management problems.

In a statement on Thursday, SSGC Managing Director, Zuhair Siddiqui, this is the biggest challenge faced by SSGC as well as SNGPL, which was affecting the efficiency of these gas utilities.

SSGC MD said it was not fair to blame the gas companies for not limiting the losses incurred as a result of UFG as there are severe law and order issues and the writ of the Government is compromised. In this regard, he referred to the case of Balochistan, which consumes just nine percent of the total gas supply by SSGC and is yet responsible for three percent of the company’s total 12 percent UFG.
“There are several misconceptions associated with the Sui Southern Gas Company. It is the government that fixes the cost at which we buy gas from the E&P Companies and it is the Oil and Gas Regulatory Authority that decides at the rate the gas is sold to the customers,” SSGC MD said.

“We are facing two big issues — shortage of gas and gas losses. The shortage is due to depleting gas fields as the gas demand continues to increase. The Unaccounted for Gas (UFG) component is 35 to 40 percent. We recently found as many as six illegal gas connections supplying gas to several residential areas that we had not as yet given connections to,” he revealed.
The MD, however, said that owing to the Company’s untiring efforts, UFG had come down by about two percent this year. He said the reduction in UFG losses was despite the fact that six million cubic feet of gas was being stolen in Karachi annually only and, in some areas, entire towns were being provided stolen gas.

The MD expressed his concern over occurrence of gas theft in Balochistan as the situation was threatening operations there. He said SSGC was conducting raids against the theaf mafias with the help of the FIA but the raiding teams were also being attacked in some areas.

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