Inside Financial Markets
Around 8,383 KM additional gas pipelines being laid in the current FY - Inside Financial Markets

Around 8,383 KM additional gas pipelines being laid in the current FY

– Associated Press of Pakistan

The two state-companies, SNGPL and SSGC, are reinforcing their network by laying around 8,383 kilometers (KM) additional transmission and distribution pipelines collectively across the country as per the target given for the current fiscal year.

The Sui Northern Gas Pipelines Limited (SNGPL) is working on the task to lay 6,965 KM lines, while the Sui Southern Gas Company (SSGC) is in process of placing 1,418 KM pipelines in their respective areas, according to an official document available with APP.

During the last fiscal year, the companies had laid around 5005 KM lines, out of which the SNGPL placed 4,155 KMs and SSGC 850 KMs.

To boost economic activities and increase industrial production, the companies would provide gas to Special Economic Zones (SEZs) and industrial parks, for which the government has allocated sufficient funds in the Public Sector Development Programme 2020-21.

Accordingly, the SNGPL has planned to execute a 29-KM pipeline scheme for supply of 30 Million Cubic Feet per Day (MMCFD) gas to Rashakai SEZ in Khyber Pakhtunkhwa under China Pakistan Economic Corridor (CPEC) project.

Similarly, a 20-KM transmission line would be laid to supply 40 MMCFD gas to Allama Iqbal Industrial City / M3 Industrial City , from Chiniot to terminal Point (zero point i.e.doorstep) of the economic zone.

To address the acute low gas pressure issues during the winter season in Mardan and Peshawar regions, the SNGPL would undertake the system augmentation including laying of 28-KM Charsadda Offtake (Gulabad) – Charsada transmission loopline, 21-KK Charsadda – Khazana transmission loopline and 24-KM Charsadda -Tangi transmission loopline.

Whereas, the SSGC would lay a nine-KM pipeline for supply of 13.5 MMCFD gas to Dhabeiji SEZ at Town Border Station (TBS), Sindh, besides laying a 3.5-KM supply line to supply 13 MMCFD gas to Bin Qasim Industrial Park at TBS, Sindh.

The SSGC has also planned to install one New Gas Turbine driven Centrifugal Compressor at HQ-Shikarpur, Sindh, lay 125-KM pipeline from Sindh University, Jamshoro to Karachi and 31-KM pipeline from Attock Cement Pakistan Limited (ACPL) Clifton to Surjani Town, Karachi.

As per the official data, there is a gap of over two Billion Cubic Feet per Day (BCFD) gas between production and demand of the commodity to meet the requirements of more than 9.6 million consumers across the country.

The country’s indigenous natural gas production is around 4 BCFD against an unconstrained demand of over 6 BCFD.

Syed Zaki Hussain

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)