Govt focusing on improving transmission line

SNGPL, SSGC have planned to invest billions to upgrade distribution network

ISLAMABAD: The government is following a compressive strategy to reinforce the existing gas transmission network for which around Rs3,571 billion will be spent in different phases.

“An amount of Rs71 billion will be spent on upgrade of Sui Northern Gas Pipeline Company (SNGPL) and Sui Southern Gas Company (SSGC) transmission network across the country during the current fiscal year, besides initiating the North-South gas pipeline project worth $2 billion and approximately $ 1.5 billion Gwadar-Nawabshah gas pipeline and LNG terminal at Gwadar,” official sources in the Ministry of Petroleum and Natural Resources told APP.





SNGPL and SSGL have planned to invest Rs13,896 million on transmission projects, Rs32,739 million on distribution projects and Rs24,408 million on other projects, bringing the total investment of Rs71,043 billion.

Commenting on last year’s performance of companies, officials said SNGPL and SSGC had laid 116 km gas transmission network, 1,848km distribution, 679Km service lines and connected 203 villages and towns to gas network.

During the period, they said the utility companies had invested Rs9.959 billion on transmission projects, Rs8.705 billion on distribution projects and Rs13.705 billion on other projects bringing total investment to about Rs31.919 billion.



According to officials during the fiscal year 2015-16, the companies issued 254,648 domestic, 202 commercial and 20 industrial connections.

Answering a question, the sources said a 1,100-kilometer North-South gas pipeline will be constructed with Russian investment of $2 billion. Under the project, around 12.4 billion cubic meters of gas would be transported from Karachi to Lahore per annum through a 42 inch diametre pipeline.

Published in The Express Tribune, January 10^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.