KARACHI, Jan 7: The government has sought details from the Sui Southern Gas Company (SSGC) as to what role it can play in the gas infrastructure and rehabilitation programmes in Afghanistan.

This was stated by SSGC managing director Mukhtar Ahmed in a brief chat with newsmen after the press conference at the SSGC head office here on Monday.

“It will be a great opportunity for the company to involve in exporting its technical expertise with transmission and distribution systems,” he said.

To a query whether the SSGC has individually received any such query directly from Afghanistan, he said, “we have not received anything as yet.”

But the SSGC has already received queries from Tanzania and Oman for providing technical expertise and master planning their distribution network.

Oil marketing companies (OMCs) are also eying on the developments in the oil and gas sectors as well as to market their petroleum products in Afghanistan. Exploration companies are also looking for opportunities to win major contracts.

On domestic scenario, he said, Pakistan’s gas demand projection was estimated to surge to 3.7 billion cubic feet per day (bcfd) in 2005 from the current 2.6 bcfd, rising to 4.2 bcfd in 2010 and to 4.6 bcfd in 2015.

He said gas production from existing fields like Sui had started declining and it would reach its lowest after 10 years. So there is a gap of one billion cubic feet per day between demand and supply. To overcome this, Pakistan is looking for gas import options from three countries — Turkmenistan, Iran and Qatar — which have ample proven gas reserves of 1,213 TCF.

The company has already started infrastructure expansion programme at a cost of Rs4.6 billion through its own resources and commercial borrowing which will provide additional gas supply of 460 mmcfd to the distribution system, he added.

The SSGC has a total customer base (industrial, commercial and domestic) of 1,598,467. Gas sales to Karachi stood at 152,220 mmcfd in 2000-2001 followed by 40,012 mmcfd to interior Sindh and 14,735 mmcfd to Balochistan.

The company’s profit before tax was Rs1.98 billion in 2000-2001 as compared to Rs1.5 billion in 1999-2000, while the profit after tax is higher by 63 per cent to Rs1.3 billion from Rs792 million 1999-2000. The company announced 15 per cent dividend to its shareholders after a gap of eight years.

On a row with the KESC and Wapda on outstanding amounts, Mukhtar said the SSGC had not a happy record with these companies. The SSGC has to recover Rs1.3 billion from the KESC and Rs2.9 billion from Wapda.

On privatization, he said the LPG business was already sold to Caltex Oil Pakistan in October 2000, while the re-bidding has been planned for meter manufacturing plant as only one bid was received.

The sale of Sui Purification Plant to Pakistan Petroleum Limited (PPL) is being processed. For the SSGC’s distribution business, unbundling concept has been approved in principle and offer of sale is expected in two years.