KARACHI, Oct 29: Sales volume of Sui Southern Gas Company Limited (SSGCL) increased to 84,065 million cubic feet (mmcf) in July-September 2004 as compared to 75,242 mmcf in the corresponding period of last year, up by 12 per cent. In the same period, sales by value increased to Rs13.4 billion as compared to Rs11.3 billion, up by 19 per cent.

This was informed by the chairman, SSGCL, Aitzaz Shahbaz, while chairing the 339th meeting of Board of Directors held on Thursday. He meeting approved the un-audited accounts for the 1st quarter ended September 30, 2004.

The profit earned after tax during the period under review stands at Rs336 million and earning per share is Rs0.50, which is slightly more than the earning of Rs0.46 for the corresponding period of previous year.

During the quarter, it was informed that 17,436 new gas connections were provided comprising 74 industrial, 323 commercial and 17,032 domestic customers. The commutative number of customers increased from 1.734 million as on June 30, 2004 to 1.744 million on September 30, 2004, says a press release.

The board was also informed that the production of meter manufacturing plant had improved by 26 per cent during this period as compared to the same quarter of last year.

The meter plant produced 111,000 meters for self consumption and for sale to Sui Northern Gas Pipelines Ltd (SNGPL). The profit earned by meter plant increased to Rs21 million as compared to Rs20 million earned in the same period of the previous year.

The Board was also informed that during the period under review, the company continued the physical implementation of network expansion in line with the annual plan of Rs7 billion, which is part of the five year "Gas Infrastructure Rehabilitation Expansion Project"-II (GIREP-II), having an estimated capital outlay of Rs36 billion. After completion of this project, the company's network capacity would increase from 1,200 mmcfd to 1,800 mmcfd.

Construction of 16 inch dia 18 km long pipeline for supply of natural gas to Kuchlak (Quetta) has started and would be completed during the current financial year. The project to supply gas to Kalat (Balochistan) has also been started, but full speed implementation thereof could not be taken due to shortage of pipeline.

To meet the increasing demand of gas in Quetta region, during the winter season, an 18 km long 18 inch dia pipeline is being laid from Aabe-gum to Mach on a fast track basis. After completion of this line, additional gas of about 8 mmcfd would be available to Quetta region, which will help in meeting additional demand.

To strengthen the distribution network, a 42 inch dia 13 km long loop line is also planned from sales meter station of Fauji Jordan Fertilizer Company to Bin Qasim Power Station at a cost of Rs570 million.

The construction on first phase of 24 inch dia 116 km long pipeline from Karachi to Hyderabad has also started. The second phase of this project would be launched in the next year 2005-06, and after commissioning of the same, additional 200 mmcfd gas would be available to feed power sector and other industries in Karachi.

The Board was informed that a gas price equalization agreement was signed between SSGC and SNGPL on July 30, 2003, under which SNGPL pays cost differential to SSGC as it gets larger quantity of cheaper gas from the Sui field. During the period under review, SSGC received an amount of Rs1,385 million from SNGPL under this agreement.

The company added 300 km of pipeline network to expand its distribution system. Around 20 new towns and villages were also provided natural gas, raising the numbers to 809 as against 789 as on June 30, 2004.