Gas theft: UFG a major challenge for SSGC
Gas utilities not responsible for problems caused by security issues: MD.
“We recently found as many as six illegal gas connections supplying gas to several residential areas” Says SSGC MD. PHOTO: FILE
KARACHI:
Sui Southern Gas Company (SSGC) has been facing Unaccounted for Gas (UFG) losses of 35-40% every year, including sabotage of gas pipelines, theft and other management problems.
According to the SSGC Managing Director, Zuhair Siddiqui, this is the biggest challenge faced by SSGC and Sui Northern Gas Pipelines Limited (SNGPL), which is affecting the efficiency of these gas utilities.
In a statement, the 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 that contribute to it. He referred to the case of Balochistan, which consumes just 9% of the total gas supply by SSGC and is responsible for 3% of the company’s total of 12% UFG.
“There are several misconceptions associated with SSGC. It is the government that fixes the cost at which we buy gas from the exploration and production companies and it is the Oil and Gas Regulatory Authority that decides rate gas is sold to the customers,” said Siddiqui.
“We are facing two big issues - shortage of gas and gas losses. The shortage is due to depleting gas fields as gas demand continues to increase. The UFG component is 35-40%. 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 2% 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.
Published in The Express Tribune, September 13th, 2013.
Sui Southern Gas Company (SSGC) has been facing Unaccounted for Gas (UFG) losses of 35-40% every year, including sabotage of gas pipelines, theft and other management problems.
According to the SSGC Managing Director, Zuhair Siddiqui, this is the biggest challenge faced by SSGC and Sui Northern Gas Pipelines Limited (SNGPL), which is affecting the efficiency of these gas utilities.
In a statement, the 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 that contribute to it. He referred to the case of Balochistan, which consumes just 9% of the total gas supply by SSGC and is responsible for 3% of the company’s total of 12% UFG.
“There are several misconceptions associated with SSGC. It is the government that fixes the cost at which we buy gas from the exploration and production companies and it is the Oil and Gas Regulatory Authority that decides rate gas is sold to the customers,” said Siddiqui.
“We are facing two big issues - shortage of gas and gas losses. The shortage is due to depleting gas fields as gas demand continues to increase. The UFG component is 35-40%. 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 2% 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.
Published in The Express Tribune, September 13th, 2013.