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December 7, 2018

SNGPL slashes UFG to 8.07 pc in 2016/17

Business

December 7, 2018

Lahore: Sui Northern Pipelines Limited (SNGPL) has brought down its unaccounted-for gas (UFG) losses to 8.07 percent in 2016/17 from as high as 11.17 percent back in 2012/13.

“As per the last available Ogra’s (Oil and Gas Regulatory Authority) determination, UFG of the company for FY2016-17 is 8.07 percent, which includes impact of allowances against factors beyond company’s control as deemed sales in line with ECC (Economic Coordination Committee) guidelines,” SNGPL said in a statement on Thursday.

Oil and Gas Regulatory Authority (Ogra) annually determines UFG of the company, the company said with reference to reports that estimated UFG for the last fiscal year at 10.8 percent.

“UFG figure of FY2017-18 is yet to be finalised by Ogra,” SNPL said.

The gas utility further said Ogra changed the UFG calculation criteria with effect from FY2018.

“The allowances previously given as deemed sale have now been built in under the head (of) local conditions component against which the company has to carry out certain UFG related activities i.e. key monitoring indicators (KMIs),” it said.

“On the basis of performance against KMIs, the UFG disallowance will be finalised by Ogra annually.”

The company said it submitted the petition for final revenue requirement for FY2018 to Ogra along with progress of KMIs, “however, decision of the authority is still awaited”.

“We anticipate that there will be no considerable variation in volumetric disallowance in FY2017-18, as compared to previous year.”

UFG losses comprise of three major components, including gas theft, leakages and measurement errors.

SNGPL carries out vigilance activities in all the regions to control the gas theft and has detected large number of gas pilferage cases during FY2018, including removal of gas networks. “The company is committed to address the menace and is taking all possible measures to control the gas losses,” the utility said.

A joint study on UFG by the utilities, including Sui Southern Gas Company said underlying factors of UFG losses are theft, pipeline leakages and measurement problems. Aging pipes are prone to leakages if not maintained, weak or faulty measurement equipment hampers vigilance of supplies to densely populated areas, and remote areas in domestic sector are susceptible to theft, according to the study’s findings.

Minister for Petroleum and Natural Resources Ghulam Sarwar Khan earlier said one percent of lost gas volume has a value of two billion rupees.

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