Company Business.docx

Company business Profile: 1. Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private limited Company in 1963 and converted into a public limited company in January 1964 under the Companies Act 1913, now The Companies Act 2017, and is listed on the Pakistan Stock Exchange (PSX). 2. The Company took over the existing Sui-Multan System (217 miles of 16 inch and 80 miles of 10 inch diameter pipelines) from Pakistan industrial Development Corporation (PIDC) and Dhulian-Rawalpindi-Wah system (82 miles of 6 inch diameter pipeline) from Attock Oil Company Limited. The Company's commercial operations commenced by selling an average of 47 MMCFD gas in two regions viz. Multan and Rawalpindi, serving a total number of 67 consumers. 3. Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company serving more than 5.3 million consumers in North Central Pakistan through an extensive network in Punjab, Khyber Pakhtunkhwa and Azad Jammu & Kashmir and is certified against ISO 14001:2015 & OHSAS 18001:2007 Standards. SNGPL’s 11 sites have been registered under the "SMART2" Program by Pakistan Environmental Protection Agency (PAK-EPA) 4. The Company has over 50 years of experience in operation and maintenance of highpressure gas transmission and distribution systems. It has also expanded its activities as Engineering, Procurement and Construction (EPC) Contractor to undertake the planning, designing and construction of pipelines, both for itself and other organizations. 5. SNGPL transmission system extends from Sui in Baluchistan to Peshawar in Khyber Pakhtunkhwa (KPK) comprising over 7,756 KM of Transmission System (Main lines & Loop lines) 6. The distribution activities covering 3,250 main towns along with adjoining villages in Punjab & Khyber Pakhtunkhwa are organized through 15 regional offices 7. Distribution system consists of 94,263 KM of pipeline. SNGPL has over 5.3 million consumers comprising Commercial, Domestic, General Industry, Fertilizer Power & Cement Sectors. Annual gas sales to the consumers were 597,056 MMCF worth Rs. 216,652 million during Jul 2011 - Jun 2012. 8. Company Registration Number: CUIN-0043761

REGULATIONS Allocation of gas from different sources is made by GOP while the wellhead prices are fixed by the OGRA per Petroleum Concession Agreements/contracts.   

Consumer selling price including sales to major consumers (i.e. power, fertilizers etc) are notified by the GOP/OGRA. SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in operation (ROA) for meeting financial charges, taxation and a reasonable return to the shareholders. The prescribed price i.e. the price which the company is allowed to retain out of consumers selling price to meet the covenanted rate of return, is determined by OGRA.

Regulations:  

Pakistan Stock Exchange Regulations Central Depositories Act 1997

DISTRIBUTION NETWORK Year Wise Increase In Distribution Network 2012-13

93,646

5,850

2013-14

96,589

2,943

2014-15

99,378

2,789

2007-08

59,952

7,558

YEAR WISE INCREASE IN TRANSMISSION SYSTEM 2015

7,796

0.81

115.72

2016

7,941

1.86

119.73

2017

8,547

7.63

136.5

2018

8,876

3.85

145.6