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Explanation on Post Gas Tariffs Revision Concepts

This media release is being issued to clarify the misconceptions in certain media sections about the enhancement of monthly gas meter rent along with revision of gas tariffs by SSGC. We do understand that this media release will be greatly beneficial for our customers as some new factors and tariff slabs under revised tariff with their retro-respective impacts are perhaps not clear to our customers.

It may be noted that Oil and Gas Regulatory Authority (OGRA) vide its notification # OGRA-10-3 (8)/2020 dated February 15, 2023 had revised the gas tariffs for various customer categories such as Industrial, Commercial and Domestic sectors that are in effect from January 2023.

Through the said notification, for domestic customers, OGRA has introduced FIXED CHARGES against piped natural gas service facility at doorstep that are bifurcated into two categories, i.e., Protected and Non-Protected customers. All those customers who have consumed 90 cubic meters or less of gas on an average during last winter season spanning from November 2022 till February 2023 will fall in the Protected category whereas those consuming more than 90 cubic meters of gas on average during similar period shall be considered as Non-Protected customers.

The fixed charges for the Protected customers shall be Rs. 10/- whereas for the Non-Protected customers they will be Rs. 460/-. The previously charged monthly meter rent for both categories shall remain as Rs. 40/-. For both these categories, previous one slab benefit will be available. However, it may also be noted that protected customer will be treated as non-protected on the basis of its subsequent month’s consumption with more than 90 cubic meters as barometer for that particular month only.

Subsequent to the said notification, the gas bills of January and February 2023 that were issued on previous tariff, have been revised and differential will be collected in instalments in the bills of March to May 2023. First instalment against January 2023 bill was recovered in the bill of March 2023, whereas 2ND and 3RD instalments against February 2023 bill will be collected in instalments in bills of April and May 2023. This amount will reflect in monthly gas bills under the head of ‘Adjustment’ and as arrears in the head of ‘Previous Balance’.

We understand that above explanation will help in clear understanding of this tariff revision. However, for seeking detailed information on the revised gas tariffs for various customer categories, our customers can review the said notification by clicking http://www.ogra.org.pk/download/8832 that is available at OGRA’s website.

SSGC’s ambitious Rehabilitation projects in DHA and Clifton to ease gas supply woes

Karachi is one of Pakistan’s biggest gas load centers. This implies supply of uninterrupted gas to a city that consumes more than 60% of the gas in SSGC system. SSGC is not just focused towards laying down new gas pipelines inside the city but in also rehabilitating and reinforcing old lines to augment supplies to the customers as well as ease pressures.

For the last few years, SSGC has undertaken an ambitious Rs. 10 billion, 1,000 km rehabilitation project for Karachi, with around 550 Km worth of pipeline network to be rehabilitated and reinforced in one of its most populated localities of DHA and Clifton to ensure supply of gas especially to those areas that are at the tail-end of the distribution line. It is a significant project, not just in terms of costs involved but in terms of network to be rehabilitated.

So far, the Company’s Projects and Construction (P&C) teams has completed rehabilitation work in Phases II, IV and VII (Khayaban-e-Badban) in DHA and Blocks 4 and 5 Clifton, spreading over a total network of around 200 km. On the other hand, NoCs from respective authorities (DHA/CBC) are awaited to commence work in DHA Phases I, V, VI and VII. SSGC is also all set to start work on the pipeline network spanning around 150 Km in Phase VIII.

The task of procuring NOCs from DHA/CBC is one of the major obstacles behind meeting the set timeline for implementation of the projects. SSGC has always paid in advance the charges against road restoration to Cantonment Board Clifton (CBC), which is normally half of the project cost.

In addition to the above, SSGC successfully implemented work on 20” dia. high pressure supply main along Abdul Sattar Edhi Road (the main Sea View Road) in 2021, in order to boost the gas supply in Defence and Clifton areas. The Company has also installed 4 Pressure Regulation Stations on this supply main.

Rehabilitation projects in Lyari to ensure better supply and pressure

Lyari is one of Karachi’s oldest yet thickly populated marginalized localities and at the tail-end of the gas distribution network. Due to the law and order situation in the past, SSGC was unable to start some large supply main projects as well as a mass rehabilitation projects for the old gas network. However in order to maintain gas supply in this situation through small pipeline replacements, SSGC gas network was badly compromised. After the law and order situation improved a few years back, SSGC started and completed a large high-pressure supply main of 12-inch dia. of 5 km from Mazar-e-Qaid to Dhobi Ghat Lyari in 2022 to boost gas supply at this tail-end area.

Now SSGC has planned around 350 km of network rehabilitation projects at a cost of around Rs. 3.5 billion to cover the entire Lyari and some adjoining areas. The projects will replace the old steel network with new HDPE better capacity pipelines for efficient gas supply to avoid outages and resolve low gas pressure problems in the area.

A major achievement – UFG in single digits in Karachi

After being in double digits for long, Unaccounted -for-Gas (UFG) numbers have improved to 8% since the last 6 months in Karachi which consumes 60% of the gas in SSGC system. Establishment of zonal level management structure in Karachi was a key factor in achieving these results. Initially, central region was classified into 10 zones and based on encouraging results in UFG savings, the east and west regions have also been restructured on similar lines.

The new structure has enabled improvements in complaint responsiveness, network integrity management and granular analysis of billing trends.

SSGC sets record straight on assertions against Company, MD

SSGC has strongly reacted to news circulating in certain sections of the media which is engaged in presenting a totally fabricated and misleading picture of the Company while making baseless assertions about its Managing Director Mr. Imran Maniar and his professional background.

Clearly the current onslaught of negative news being unabashedly targeted at SSGC MD and the gas utility itself, seems like a well-planned work, orchestrated by some vested interests in the media who want to damage the reputation of the Company and its Managing Director through baseless assertions and insinuations.

Contrary to a very negative picture being portrayed in the media, it must be reiterated that SSGC management under the leadership of its MD Mr. Maniar has undertaken a number of initiatives that have helped the Company to come out of the woods from a loss-making entity to a profitable venture once again after a lapse of four years, with all achievements coming through with the Company’s existing human resources. In addition, the Company under the able leadership of Mr. Maniar has taken bold and unprecedented measures to control the nagging menace of Unaccounted-for-Gas or line losses that had severely impacted the Company’s financial bottom-line. In Karachi alone, since the last six months, UFG is down to 8% from the once14% primarily due to different, first-time measures. Some recent new items have attributed the current gas supply situation to SSGC, a downstream company, when in reality the widening demand-supply gap is a purely supply-side phenomenon, due to 10% depletion of natural gas fields and lack of any major gas discovery from the upstream (exploration and production) companies.

SSGC has never shied away from maintaining an amiable relationship with all its customers, including domestic, commercial and industrial customers by ensuring that their grievances are met on top priority. It needs to be understood that the Company rationalizes the use of gas supply by following the Government of Pakistan’s Gas Load Management Plan that prioritizes supply to domestic, commercial and industrial customers in this pecking order. To alleviate the inconvenience caused to its customers, SSGC is focusing its energies in beefing up its existing transmission and distribution infrastructure while also augmenting supplies through alternative energy subsidiaries such as SSGC-LPG (Pvt.) Ltd. (SLL), SSGC Alternate Energy. Moreover, the Company is ramping up the local production of its G-4 gas meters and in the process, making substantial savings in foreign exchange. SLL has excelled of late by becoming a profit-making subsidiary while importing major LPG shipments recently to present a safe, accessible and environment friendly fuel to customers.

The recent incorporation of SSGC-Alternate Energy subsidiary company will help to generate billions of rupees of Non-Operating Income with direct impact on the Company’s financial bottom-line. This will be done by bringing in unallocated gas to market, purchase of bio-gas through public/private partnerships, Nitrogen Production & Sale to Gas Distributors in Exchange of Natural Gas, power generation systems at SMSs and from Waste conversion of Coal to Gas and production and sale of Renewable Hydrogen.

It will not be wrong to declare that SSGC is committed towards a sustainable energy future through projects never before undertaken in its long history.

Sections of the media are also unfairly questioning the way certain employees have been terminated from Company employment. It needs to be understood that SSGC follows due disciplinary process whenever required before taking any disciplinary action against any employee. On receiving any complaint, an independent inquiry is conducted and fair opportunity is provided to the accused. The decision to dismiss any employee is taken only if charge of gross misconduct is established against the accused. Furthermore, the terminations from service are in line with Company’s policies and employment terms.

For those who have been wrongly questioning the appointment of the current Company MD, it is pertinent to mention here that Company had engaged the services of renowned and leading headhunting firm that had referred the most suitable candidates for MD / CEO position after due process of screening, shortlisting and interview assessments. SSGC Board, after the interview further referred the most suitable candidates to the Ministry of Energy. The Ministry after due deliberation finalized the appointment of Mr. Imran Maniar as a MD / CEO of SSGC. From day one, the MD has been geared towards rejuvenating the Company on profitable lines while motivating its employees to become high proficient and efficient workforce and encouraging them to find solutions to current problems with an out-of-the-box approach.

Beware of Scams!

SSGC denies any association with a person named Salman Sultan who is claiming in social media forums through this attached post that he can offer jobs in the gas utility to interested individuals.

We request all social media followers to avoid contacting such individuals who may be out there to scam and fleece the people.

SSGC follows merit-based and transparent requirement process that ensures acquisition of best talent. All recruitment advertisements, either published by SSGC itself or through head hunting firms, are uploaded on the company’s official website and posted on its official social media forums such as LinkedIn for the benefit of interested applicants.

Major Breakthrough for G-4 Meters

The first ever batch of SSGC’s G-4 Domestic Gas Meters manufactured completely at its Meter Manufacturing Plant (MMP) has successfully passed the international standards of endurance testing conducted at a recognized meterology lab in Karsrow, Germany. With this, MMP is all set to ramp up local production of G-4 measuring, ensuring massive savings in foreign exchange expenditure. It is important to note that SSGC has been able to achieve this feat in the first attempt whereas multiple attempts are usually required in similar projects.

It is indeed one of the finest displays of engineering, planning and management rigour as well as of professionalism and commitment to the target whereby the MMP supported by other concerned functions have been able to locally produce G-4 measuring units (previously imported).

Women’s Day Celebrate with Great Zeal and Vigor

Chairperson, Dr. Shamshad Akhtar, MD, Imran Maniar, Aerospace Engineer Nida Rizwan, IFC’s Country Officer for Pakistan, Naz Khan, Vice Chancellor DUET, Dr. Samreen Hussain, and SSGC’s head of Corporate Communications, Salman Siddiqui, spoke to a large gathering of audience acknowledging role of women in country’s progress through multiple spheres of life.

Day-Care Center Inaugurated in SSGC

Dr. Shamshad Akhtar, Chairperson Sui Southern Gas Company along with Company’s Managing Direcot, Imran Maniar, jointly inaugurated a state-of-the-art Day Care Center in SSGC’s Head Office building complex.

This center will facilitate SSGC’s working mothers to have their young children taken care of by professional caretakers, while they swiftly manage their work-related assignments in the office.

Sui Southern Gas Conferred with CSR Award at NFEH Int’l Summit

SSGC’s Corporate Social Responsibility (CSR) initiatives won accolades at the 14th International CSR Summit 2022.

On behalf of the company, Salman A. Siddiqui, Head of Corporate Communications, received the award in the category of ‘Vocational Training’ from Farrukh Habib, Minister of State for Information. The Summit-cum-awards was organized by National Forum for Environment and Health (NFEH) in an Islamabad hotel.

Over the years SSGC has been pursuing its vibrant CSR program in the areas of education, health, environment, and community development and more particularly in undertaking projects of sustainable nature. The Company carries out CSR initiatives either on its own or in partnership with government and non-governmental organizations.

Of late, besides undertaking conventional CSR-related projects, the Company has worked in tandem with many not-for-profit organizations and academic institutions in setting up dozens of ‘Computer Laboratories’ in its franchise provinces of Sindh and Balochistan, focusing the schools serving the lesser privileged students absolutely free of any costs.

The governing body of NFEH and the panel of distinguished judges appreciated SSGC’s vision being implemented through its contributions in the field of CSR. More than 50 organizations with significant contributions to social development through different remarkable projects and activities were conferred with awards at this CSR Summit.

Minister of State for Information while addressing the Summit said that all award-winning organizations have played a significant role in the empowerment of society in the fields of education, health, environment, human rights, and socio-economic development by undertaking welfare projects for lesser privileged and under-served masses of Pakistan. Due to its persistent execution of the CSR program, SSGC had bagged CSR awards at 13 out of 14 Summits organized by NFEH in the yesteryears.

MD represents SSGC at CEO Summit

Imran Maniar, MD, SSGC recently spoke at the CEO Summit Asia 2022 held on March 18, 2022. The Summit was organized by the CEO Club Pakistan. The theme of the panel discussion was ‘Growth Strategies for Companies in Testing Times.’