Report On Asia Gas Company Ltd Commerce Essay

Importance of public-service corporations can non be ignored worldwide in urban or commercial sectors. Natural gas is the most of import beginning supplying energy to commercial and domestic users. ASIA gas company Ltd ( AGC ) is the Pakistan ‘s taking incorporate energy public-service corporation company, which is powering the national economic system by supplying 360 BCF ( Billon per three-dimensional pess ) of natural gas yearly, at low-cost monetary values to 1.98 million industrial, commercial and domestic clients. AGC transmittal and distribution system is comprised over 3,000 kilometers of high force per unit area grapevine and 27542 kilometer distribution web. Gas metre fabrication works with an one-year production capacity of avers 550,000 metres. AGC makes gas available to client ‘s at the most impossible at the most impossible topographic points in the states of Sindh and Balochistan, while advancing preservation of the environment pursing best patterns in corporate administration.

The nucleus concern of the company is the purchase of natural gas and distribution and merchandising. It is besides engaged in fabricating gas metres and import of LPG. AGC has a superior place in this industry in its assets turnover and gross revenues but its worsening since twelvemonth 2004.

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The ASIA Gas Company ( AGC ) ( Once Asia Gas Transmission Company Limited ) was formed in 1954. The Company in its present form was formed on March 30, 1989 following a series of amalgamations of three open uping companies, viz. Asia Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. ASIA Gas Company is Pakistan ‘s taking integrated gas company. The company is engaged in the concern of transmittal and distribution of natural gas in southern portion of Pakistan. ASIA Gas Company transmittal system extends from Asia, Balochistan to Karachi, Sindh.

The company besides owns and operates the lone gas metre fabrication works in the state, under an understanding with Schlumberger Industries, France. The Company is listed on the Karachi, Lahore and Islamabad Stock Exchanges.

The Company is managed by an independent Board of Directors for policy guidelines and overall control. Soon, AGC ‘s Board comprises 14 members. The Pull offing Director/Chief Executive is nominee of Government of Pakistan ( GOP ) and has been delegated with such powers by the Board of Directors as are necessary to effectual behavior the concern of the company

Company Mission

To run into the energy demand of client through dependable environment friendly and dependable environment and sustainable supply of natural gas while carry oning company concern professional, professional, expeditiously, ethically and with duty of all our interest holders.


AGC strategic vision to utilize and go the most engineering in Pakistan and accomplish best and higher organisational effectivity and greater concern, with productiveness and best public presentations implementing “ lower cost and higher returns ” which will ensue in “ satisfied stakeholders ” .


Keep Company ‘s Interest above ego and Acts of the Apostless in ethical mode. Promote ethical concern environment. Take effectual actions if perceivers unethical behaviour or state of affairs. Seen & A ; known to be honest. Lives within agencies and intellectually honest.


Brands positive part towards the accomplishment of AGC ‘s Vision. Strives for Continuous betterment. Respond efficaciously to client demands. Takes seasonably & A ; Quality determinations.

Team Work

Building strong relationships across maps and to work good with all type of peoples and corporate with others. Sharing thoughts is the best pattern with others. Supports the accomplishments of Company and squad ends. Contribute to team effectivity by utilizing people ‘s different accomplishments. constructive solutions should be made while keeping positive working relationships and to show with sensitiveness.

Duty of Stake Holders

Change in operating environment that impacts the concern ( i.e. markets, clients, providers, employees, rivals, engineering, regulative, political and public ) . Making solutions to run into the client demands and develop co-workers and members of squads to better the accomplishments and their public presentations. Ensure maximal use of resources. Balances short term and long term precedences of the administration to give maximal consequences with conformity of jurisprudence.


Transmission Network 3,062 ( Km )

Distribution Network 27,542 ( Km )

Compression Capacity 62,600 ( HP )


Sindh: 19

Balochistan: 10





Industrial: 3,140




Pull offing Director








Board Of


Deputy Managing Director


Internal Audit












Human Resource





Gross saless


Health Safety

Planing & A ;






Material Management









Denationalization Cell

U.F.G Cell

Planing & A ; Construction


ASIA Gas Company Ltd ( AGC ) is progressive and dynamic as it is managed by sound professionals in each field. Direct entree of production, gross revenues and fiscal information is available across all degrees of direction, any twenty-four hours and any clip. AGC has clinched the higher place in industry undergoing different technology-oriented concern which drives the company to success and is the anchor of growing. The revolution in IT universe has changed AGC into first public-service corporation company.

AGC is running different extended domestic and international preparation plans and have made Human resource as self sufficient unit, and AGC has made a benchmark by giving preparation to its staff work force alternatively of engaging foreign people and this is a large alteration in public-service corporation sector. The professional development plans have given AGC a benchmark and repute with the best HR engineering in the market today. AGC besides revamp Customer Relationship Management model and Technology Enabled Cultural & A ; Business Transformation by presenting a state-of-the-art, off the shelf, Business Applications ; the Customer Information System ( CIS ) , Enterprise Application ( ERP ) , and Business Process Mapping ( BPM ) .


Internal auditing section at ( AGC ) perform professional activity were involved in by assisting organisations to accomplish their declared aims. And it will be using a systematic methodological analysis which can be help in for analysing for the concern processes, Goal of foregrounding organisational jobs to processs and activities which will be aid in urging solutions. The internal auditing activity will be performed by the professionals internal hearers were employed to the organisation to look into the internal auditing. The internal auditing will be within the organisation for the range of the wide and which may affect in the subjects such as dependability of the fiscal coverage, discouraging and look intoing fraud, conformity with the Torahs ordinances and operation efficaciousness.




ASIA Gas Company Ltd ( AGC ) usage to offer many services to the domestic & A ; commercial client.

Submission and Registration for new domestic and commercial connexions.

Conversion from domestic to commercial connexion.

Conversion from commercial to domestic connexion.

Customer relationship.

Refund of connexion charges where connexion is non required.

Restoration of old staccato connexions.

Additional/ Alteration and sweetening of gas burden of bing domestic and low force per unit area commercial client.


ASIA Gas Company ever to advance industrial activities in the state. And they present many services to Industrial costumiers.

Intermediate gas pipe line ( IMPL ) , The grapevines will be usually put for sections and lodging strategies on client ‘s cost, the multistory edifices where the chief extension will non be possible. These edifices are constructed in the form were the Numberss of residential units and independent blocks.

Main extensions for residential and commercial clients, these brinies are constructed from the mercantile establishment to the prospective consumer premises like high street in the metropoliss, small towns and towns. The Normal force per unit area of gas is been maintained in order.

Recognition and enrollment of industrial application for gas connexion. There will be some new applications which will be have them and handle like prospective appliers on AGC enquiry signifier for CNG Station, Industrial, Power Generation, alteration of duty instances and new/extension/ change along with all the necessary paperss as mentioned in therein.

Enhancement of burden in those industries the people who will use to their extension will be in burden to subject decently if there is any question in the given inside informations for their extra gas combustion equipments, working hours, gas burden demand and mill layout programs demoing the proposed location of new gas combustion equipment. There will be the Ownership and other valid paperss which are already submitted by the client in the bureau and no 1 will be inquiring once more for the resubmission of the applications.


This section provides the company with fiscal analysis and investings. The company has a good relationship with the foreign and local Bankss.











Net incomes






Grosss and disbursals of AGC shows that there is addition in gross revenues steadily over the twelvemonth amounted Rs 86.8 billion in twelvemonth 2008 and increased to 1.30 % compared the last twelvemonth, net gross revenues besides increased due to worsen in development surcharge by 95.29 % but the cost of gas was Rs 69.2 billion as now increased by 9.63 % and figures of net net income for nine months stands at Rs 319 million compared with last twelvemonth net income same term was Rs 469 million.

The company liquidness place worsening over the last old ages as we can see from the chart, and the fading profitableness is mostly a consequence in cost of gas.


AGC is an organisation, which believes in:


Employee engagement and rewarding employees

Open book direction.

Continuous betterment

Workers at AGC are free to do suggestions, express their disapprovals, and take an active portion in direction. If an thought is worthwhile it is taken into consideration and implemented in future irrespective of the degree it came from. The thoughts can run from covering with the clients to exceed direction.


AGC is widely known and acknowledge for the first technology engineering, construction, building and design, operation and care for the supply of gas in extended measure with a to the full capable substructure and supplying solutions to other companies in part.

Customer relationship is divided into following divisions.


To ease the client AGC provide assorted measure payment options.



Post Office.

PSO Station.


On-line payment.

ARY Sahulat Center.

Customer Facilitation Centers.

ASIA Gas Company ( AGC ) has launched an SMS service that allows its clients to entree charge information.

Social & A ; Environmental Responsibilities

As a public public-service corporation, AGC is committed to the present and future good being to people and the environment in which we live. The committedness is to be pursued with a end of uninterrupted betterment and guided by the undermentioned rules:

Encourage and anticipate each employee to be environmental responsible and to carry on work pattern in a safe mode.

Build wellness and safety installation and environment consideration into all stages of the concern including merchandises and engineering find and development.

Encourage and advance waste minimisation.

Actively take part with authorities bureaus and other appropriate groups to see that development and execution of environmental, wellness and safety policies.

Train worker for safe work pattern.

Execution of GIS:

GIS undertaking vision:

The undertaking vision was to make and keep an Efficient GIS environment for the sharing of geographical informations with commercial, distribution, technology direction, transmittal and other sections of AGC.

The rapid enlargement of gas grapevine web demands an efficient GIS for an analytical determination support tool for the planning, direction and development procedure.

AGC has ever taken enterprises for the betterment of their concern aims and develop measure by measure towards its vision through the usage of engineering.

AGC launches GIS in 2 different stages for the gas distribution and transmittal web.



Now yearss Pakistan are confronting a major energy catastrophe in the oil, natural gas and power in the following approaching old ages that could barricade the economic growing is coming for many old ages. Partially contributed by gas deficits, the electricity and the power is acquiring deficit and there are anticipating to be over than 5,250MW by 2010, there can be increase the oil by over 23 % to approximately 21 % million dozenss in 2010 which can be in demand and aid to the state natural these can be helpful for the state and in future there can salvage in the programs were the energy is utilizing in the right to cut down the catastrophe in the coming up hereafter.

This would go forth a shortage of about 9 million dozenss of Diesel and warming system oil imports, and since twenty-four hours by twenty-four hours the gas is acquiring deficit were their expected ti be much higher than which is need to import from the trust company and will be imported oil, therefore increasing pull on foreign exchange state of affairs.

In twelvemonth 2009 oil import measure was about $ 6.5 billion compared with twelvemonth in 2004-05 $ 3.5 billion, because of higher international oil monetary values, and its expected burden to be even higher in future as a consequence of turning in the Middle East crisis twenty-four hours by twenty-four hours. Harmonizing to the former curate of the authorities disclosed the planned five major enterprises to run into these energy demands in the Gwadar port as their got energy works and the LNG import the three major grapevines to import the gas by the gwadar works, However, four of these initials including the three import grapevine undertakings, show that there is no marks of the advancement for their scope of grounds while focal point on energy installations in Gwadar were it will be chiefly depend on the security state of affairs, besides oil and gas import grapevines.

Duty rise:

Gas demand has increased and as a consequence deficit of gas can be seen in different parts of the state so the new direction of the company is looking to increase the duty of gas to command the girl usage by the consumers. AGC proposed an increased in duty by 18 per centum from the authorities to get the better of their losingss, and the audience with the stakeholders is traveling for the determination as a consequence in discontentedness in concern and public community.

Industry Snapshot:

Pakistan ‘s dependance on gas is significantly higher as compared to other available energy resources as it accounts for about 50 % of entire energy supplies. Trusting largely on oil & A ; gas, these two beginnings of fuels jointly constitute about 78 % of the entire energy demand of the state. Though indigenously available gas is sufficient to provide to domestic demand ; major part of oil demand is met through imports. Therefore, natural gas ingestion in Pakistan is more a map of supply than demand. Hence, any increased supply through new gas finds can be easy distributed and sold, by gas distributing companies ( GDC ‘s ) due to the strong demand.

Industries are in great losingss and shuting down their operation and production due to the high cost they are confronting in production because of high public-service corporation duties and monolithic unemployment and gross diminution is seeable.

Issues and jobs with Power provider and stairss:

Government power provider is the largest client devouring 22 % of entire gas gross revenues volume and 25 % by value and they have demanded AGC to increase the gas supply because of the addition in power and they need more gas to run into the lifting demand, whereas on other manus power company have n’t paid the entire outstanding sum of Rs 18 billion. AGC has devised a quantifiable scheme for cut downing line losingss as they have increased 8.16 % and unaccounted-for-gas ( UFG ) within following old ages to a satisfactory degree.

And AGC looking for in habilitation from its distribution web and put in automatic force per unit area direction systems and carry out monolithic leak rectification and control in larceny.

These stairss and steps would assist the organisation to do nest eggs in the following old ages and direction is trusting to convey down the UFG and line losingss to 7 % and better net incomes and get the better of the losingss.

Transmission and Distribution System:

Company has launched an ambitious development and enlargement program for 5 twelvemonth and invited International groups and advisers to supply consultancy to work out their major and cardinal strategic issues. Industrial growing and increase demand of gas domestically and no major find of gas forced company for the new trans-national grapevine to be topographic point to run into the demands.

Gas Transmission Expansion Undertaking:

The biggest company is pitching to set about major enlargement undertaking and reconstituting the transmittal system throughout the state with 441 stat mis grapevine, the extra energy will be supply to power workss and different fabricating units and undertaking will be completed in following 2 old ages with spend of $ 285,000,000.

Company besides engaged in the building of high and low-pressure distribution systems and bottling of Liquefied Petroleum gas ( LPG ) and distributes it.

Gas Demand:

Pakistan ‘s natural gas industry is in a growing phase. Due to the robust growing in demand for gas, Pakistan is likely to confront a deficit in gas supply in the following few old ages. Pakistan will confront a deficit of gas of 1,203mmcfd by 2011. This spread is likely to farther widen to11,092 mmcfd by 2025. Gas distribution companies are

disbursement sharply, spread outing their substructure on the dorsum of the authorities ‘s purpose to increase local gas production coupled with import of gas. Pakistan has a well-developed and incorporate substructure of transporting, distribution and use of natural gas. With the increased E & A ; P activity in the state along with enhanced production from the bing gas Fieldss, gas ingestion is likely to turn well traveling frontward, chiefly on the dorsum of strong demand from the power sector which consumes about 36.4 % of entire gas. Harmonizing to PPIB, eight new gas/dual fuel power Stationss will be commissioned by the terminal of June 2010, which are likely to bring forth 2,350 MW of electricity.

Gas Consumption:

Consumption of gas rose significantly during FY07-08 in different sectors because of increased investing and due to enlargement of different sectors coming online. Number of CNG vehicles increased to 1.35 1000000s in FY08, demoing a leap of 35 % on Y-O-Y footing, interpreting into 29,167 vehicles are being converted to CNG every month. Investing of PKR60bn has been made in the CNG sector during July-March 2007-08 against PKR 20bn invested during the same period last twelvemonth, registering a growing of 200 % on Y-O-Y footing. Power sector has emerged as the largest consumer of gas ( 36.4 % ) followed by fertiliser ( 21.6 % ) , industries ( 19.1 % ) , family ( 17.8 % ) , commercial ( 2.7 % ) , cement ( 1.1 % ) and conveyance ( 1 % ) in footings of comparative portion of gas ingestion during the last 10 old ages. Local demand for gas is expected to stay robust supported by strong economic activity in the state and a positive permutation consequence ensuing from higher petroleum oil monetary values. The Ministry of Planning estimations gas demand will transcend supply by 3.21m Tonss of Oil Equivalent ( MTOE ) in 2011.Various proposals are under consideration for import of gas such as IPI Pipeline Project, TAPI Pipeline Project and LNG. The expected addition in demand supply spread is likely to be filled through gas imports.

LNG Mashal Undertaking:

AGC has signed an understanding with oil company and the undertaking so called LNG Mashal looking at addition in gas demand and supply projection in Pakistan indicate a spread of approx. 500 million three-dimensional pess per twenty-four hours by twelvemonth 2010, this spread held in 2007-08. And this spread can make full by constructing up to 2,100 mmcfd by 2015.

Importing the gas grapevine earliest could come on watercourse by 2015 as the Gap coverage scheme gas field find.

Advance Technology Need:

In the present universe basic societal demand is the proper supply of Gas from stakeholders up to the satisfactory degree, and this demands end-users information system maintaining record of diversified web of grapevines with single installations throughout the state.

To run into the universe challenges and enlargement of the company there is a demand of progress engineering solutions as it is progressively going indispensible for concern growing and for better planning, development, direction analysis, operation and care and for approaching undertakings because company was trusting on paper maps which are stored in Karachi head-office and most of the information is outdated as the GIS was in babyhood phase.

AGC started believing to reconstruct and re-deployment of all web maps and do a centralized information system. In twelvemonth 2006 AGC succeeded to develop its ain GIS system and is the first public-service corporation company in Pakistan and that was a strong enterprise. After the launching of GIS the developers classified the web into groups and the concluding measure of integrating, direction, organisation was done through GIS information system and gas grapevine web to study informations was besides done at this phase. Company have gone into singular alteration in footings of concern and achieved greater stock values and decreased stock list costs in short engineering transmutation brought down the mistakes and directors are more confident and experience secure to do determinations establish on the right information provided now.

Iran Pakistan India ( IPI ) Pipeline Undertaking:

It has been a decennary since negotiations on the undertaking began in 1993 for the import of gas from Iran through a multinational gas grapevine worth US $ 7.23bn, widening from Iran to Pakistan and India. With the entire length of 2,091km divided into two parts, Pakistan will have 2.1bcfd through IPI Central Route. India will have its several portion of 3.2bcfd of gas volume at its boundary line through IPI Coastal Route from this high force per unit area 56 inch diameter grapevine. Inter State Gas System ( PVT ) LTD a joint venture of AGC and SNGPL is working on puting down the grapevine within Pakistan. Imported gas will be divided among the GDCs harmonizing to the demand generated from their several country of operations. GDCs have to

enter into a purchase understanding with the ISGS. The trilateral negotiations focused on alterations sought by Iran in the gas pricing. Teheran wants the monetary value expression for the gas revised every three old ages. New Delhi and Islamabad have agreed to Persian expression of selling natural gas at US $ 4.93 per mmbtu. Although, all issues have been resolved but still the understanding has non been inked officially at province degree and no day of the month has been specified so far for the sign language of the understanding.

IPI Gas Pipeline Highlights

Future Mentality:

The attempts company is taking to command its UFG losingss and disbursals and enlargement plans they are implementing, heightening distribution of the company in new towns and small towns, replacing of old grapevines to new 1s in 190 kilometer of country. Company has besides addressed the jobs lifting of fiscal charges and for this company has taken new loans. There is an addition in assets from Rs 1.5 billion to Rs 1.7 billion shows some positive growing and that they have succeeded in overcome from their crises over the past old ages.

The new duty proposed by Government might assist in bettering the efficiency and maximal use of resources hence the public presentation will be better and company will bask higher net gross revenues with cut down costs and disbursals.


In this age where energy demand of the economic system is nil but increasing, the energy suppliers of the state have a really of import duty on there shoulder which should non be taken lightly. By and large to all energy suppliers and specifically to AGC we recommend the undermentioned distinguish points:

Expansion of transmittal web which help the people of rural countries to hold the benefit of gas in their vicinity.

Improvement of gas supply to power workss, industrial and commercial sectors including gas supply to antecedently hapless countries in the domestic sector.

Focus to better friendly and efficient client services within all parts.

Latest digital prepaid metres should be installed, with betterment ofA call Centres for an on-line client information system.

Improve in the quality of exigency response system.

Better the quality of human resource by calling planning, giving preparation to employees and development of direction hierarchy.

The company will be able to bask higher cyberspace gross revenues and the company ‘s attempts to cut down unaccounted for gas ( UFG ) will assist cut down costs, thereby stressing profitableness.

Corporate communicating enterprises and Community support services to run into the national and societal duties, as a good corporate citizen.

It is hoped that the new duty government proposed by OGRA will better efficiency and enable better use of resources.


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