October 17, 2003	Friday	Sha'aban 20, 1424

KARACHI, Oct 16: Five per cent shares of Sui Southern Gas Company Ltd (SSGC) will be offered through stock market before the end of current financial year.

This was stated by the managing director SSGC Munawar Baseer while speaking at the annual briefing for financial analysts of the company at a local hotel here on Thursday.

He said that another 5 per cent shares will be offered under green shoe option in case of oversubscription. He pointed out that government holds 70 per cent shares in SSGC.

He said privatization of the SSGC would take two to three years as scores of issues involving legal, financial, management aspects have to be resolved.

He was of the view that these matters have to be resolved before its privatization.

To a question about the anticipated dates for its privatization, Baseer said that it was not his job to set the time frame. “It is the job of Privatization Commission. Our job is to make SSGC ready for privatization through reorganization and restructuring,” he added.

He said that the financial adviser has been appointed for preparing financial report on restructuring and privatization of the SSGC and the SNGPL.

Later, talking to newsmen, the managing director said that the purchase of gas from Iran is a simpler and economical option compared to other two choices.

He said that the cost of the project can come down by more than $1 billion if Iran agrees to lay its portion of gas pipeline till Pakistani border town Jivani.

He said the SSGC could lay a pipeline to Jivani at its own expenses to connect it to its main distribution network. This would be simpler and fast and economical without involving any foreign funding, he observed.

He said that the company had briefed the prime minister Mir Zafarullah Khan Jamali about this option and he would discuss this possibility with the Iranian authorities during his forthcoming visit.

He said that gas purchase from Turkmenistan involve Afghanistan where the security situation had not improved specially in those areas where the proposed pipeline would pass through.

To a question about the price of gas purchase from Qatar, Iran and Turkmenistan, he said that Pakistan would try to buy gas at $2 or less per 1000 cubic feet from either of these options.

Earlier, speaking at the presentation of SSGC performance, he said the company would undertake Rs34.536 billion distribution and transmission project to increase its gas supply capacity from 1,200m cubic feet (mmcf) to 1,800 mmcf per day.

Talking of the financing of the project, the SSGC chief said that the company would borrow Rs 19.841 billion from banks on long-term basis, arrange Rs 10 billion from internal cash generation and Rs 3.67 billion through government grant.

He said that another similar project costing Rs3.1 billion had increased the gas supply capacity of SSGC from 600 mmcf in 2000 to 1,200 mmcf in 2002.—APP