Islamabad: Irked by the increased UFG losses, of up to 16 per cent, by the Sui companies the federal government has asked both Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Company limited (SNGPL) to link the promotions with the losses. The current unaccounted for gas (UFG) losses of both the SSGCL and SNGPL is causing a loss of more than Rs50 billion to the end consumers, it is learnt reliably here Wednesday. The unaccounted for gas (UFG) losses in SSGCL is roaming around 15.86 per cent while for the SNGPL it is around 10.20 per cent. The petroleum division has written to the Board of Directors (BoDs) of both the Sui companies to take measure for the reducing the UFG losses, source told The Nation. UFG is a phenomenon of gas loss, which is contingent upon occurrence of various technical factors when gas flows from fields to end consumers. The petroleum division has proposed the boards of both the companies to evolve a mechanism to link the promotions with the UFG losses, the source maintained. It was recommended in the letter to link the promotion of General Managers and Regional Managers with the UFG losses in their areas, the source said. It was asked that if any of the General Manager or Regional Manager failed in reducing the UFG losses stop their promotions, the source said.
Currently, the UFG level of both the companies is significantly above the allowed benchmark of 7.5 per cent.
OGRA vide its decision dated 14.07.2020 on Estimated Revenue Requirement (ERR) of SSGCL for Year 2020-21 has determined its UFG at 15.85 per cent (Volume 67,476 MMCF).The cost for 1 per cent UFG loss is Rs1.991 Billion. The total cost of the SSGCL losses is around Rs32 billion. For SNGPL, OGRA in its decision for Estimated Revenue Requirements of year 2020-21 has determined UFG at 10.19 per cent (39,426 MMCF). The total cost of the SNGPL UFG loss is around Rs19 billion. However independent analysts believe that at the rate of Rs750 per MMBTU, in monetary term one per cent UFG loss cost around Rs3 billion. With this calculation (Rs750 per MMBTU) the total losses by both the companies is around Rs78 billion. The UFG losses and inefficiencies of the management of the Sui companies is burdening the end consumers with billion of rupees and by just reducing the UFG can help reduce gas bills of consumers.
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