Report On Sui Gas Company Ltd Commerce Essay

SUI GAS COMPANY ( SGC )

SUI gas company Ltd ( SGC ) 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. SGC 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. SGC 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 prosecuting best patterns in corporate administration.

History

The SUI Gas Company ( SGC ) ( Formerly Sui 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. Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. SUI 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. SUI Gas Company transmittal system extends from Sui, Balochistan to Karachi, Sindh.

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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, SGC ‘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.

Vision

Integrity

Keep Company ‘s Interest above ego. Acts 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. Intellectually honest.

Excellence

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

Team Work

Builds strong relationships within across maps. Works good with all type of peoples and corporate with others. Solicits and portion ideas/best pattern with others. Supports the accomplishments of Company/team ends. Contributes to team effectiveness utilizing people ‘s different accomplishments and manners. Arrives at constructive solutions while keeping positive on the job relationships. Demonstrates sensitiveness.

Duty Of Stake Holders Stays abreast of alteration in operating environment that impacts our concern ( i.e. markets, rivals, engineering, clients, providers, employees, regulative, political and public ) . Create solutions to do client demands. Develops co-workers and squad members to

better their accomplishments and public presentation. Ensure optimal use of resources. Balances short term and long term precedences to maximise on consequences. Ensures conformity of jurisprudence.

SGC INFRASTRUCTURE

Transmission Network 3,062 ( Km )

Distribution Network 27,542 ( Km )

Compression Capacity 62,600 ( HP )

DISTRICTS ON GAS

Sindh: 19

Balochistan: 10

TOWN/ VILLAGES CONNECTED

Towns:93

Villages:1,138

Customers

Industrial: 3,140

Commercial:21,700

Domestic:1,919,413

ORGANISATIONAL STRUCTURE OF ( SGC )

Pull offing Director

Finance

Management

Service

Customer

Service

Engineering

Service

Board Of

Director

Deputy Managing Director

Distribution

Internal Audit

Company

Secretary

Histories

Finance

Treasury

Corporate

Planing

Information

Technology

Telecom/

SCADA

Human Resource

Administration

Servicess

Customer

Relationss

Gross saless

Charge

Health Safety

Planing & A ;

Development

Measurement

Electrical

Service

Service

Material Management

Sindh

Karachi

Distribution

Construction

Karachi

Quetta

Corporate

Communication

Denationalization Cell

U.F.G Cell

Planing & A ; Construction

MANAGEMENT FUNCTION

SUI Gas Company Ltd ( SGC ) 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.

INTERNAL AUDITING DEPARTMENT

Internal auditing section at ( SGC ) perform professional activity involved in assisting organisations achieve their declared aims. It does this by using a systematic methodological analysis for analysing concern procedures, processs and activities with the end of foregrounding organisational jobs and urging solutions. Professionals called internal hearers are employed by organisations to execute the internal auditing activity. The range of internal auditing within an organisation is wide and may affect subjects such as the efficaciousness of operations, the dependability of fiscal coverage, discouraging and look intoing fraud, safeguarding assets, and conformity with Torahs and ordinances.

Internal scrutinizing often involves mensurating conformity with the entity ‘s policies and processs. However, Internal hearers are non responsible for the executing of company activities ; they advise direction and the Board of Directors ( or similar inadvertence organic structure ) sing how to break put to death their duties. As a consequence of their wide range of engagement, internal hearers may hold a assortment of higher educational and professional backgrounds.

SEVICES DEPARTMENT

CUSTOMER MANAGEMENT

DOMESTIC & A ; COMMERCIAL SERVICES

SUI Gas Company Ltd ( SGC ) 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.

INDUSTRIAL SERVICES

SUI gas company ever to advance industrial activities in the state. And they present many services to Industrial costumiers.

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

Main extensions for residential and commercial clients, these brinies are constructed from the mercantile establishment up to the prospective consumer premises i.e. in streets of Cities, Towns & A ; Villages. The Normal force per unit area of gas is maintained.

Recognition and enrollment of industrial application for gas connexion. New applications will be received from the prospective client on SGC enquiry signifier for new/extension/ change, Industrial, Power Generation, CNG Station and alteration of duty instances, along with all the needed paperss as mentioned therein.

Enhancement of burden. Those industries who apply for extension in burden will subject punctually filled enquiry signifier giving inside informations of extra gas combustion equipments, gas burden demand, working hours, and mill layout programs demoing the proposed location of new gas combustion equipment. Ownership and other valid paperss already submitted by the client will non be asked once more.

ACCOUNTS DEPARTMENT

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

A

2004

2005

2006

2007

EPS

1.33

1.51

0.43

1.49

Net incomes

891,717

1,012,501

290,379

996,712

HUMAN RESOURCE DEPARTMENT

SGC is an organisation, which believes in:

Invention

Employee engagement and rewarding employees

Open book direction.

Continuous betterment

Workers at SGC 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.

CUSTOMER RELATIONSHIP

Customer relationship is divided into following divisions.

BILL PAYMENT OPTIONS

To ease the client SGC provide assorted measure payment options.

Banks.

ATM.

Post Office.

PSO Station.

NADRA.

On-line payment.

ARY Sahulat Center.

Customer Facilitation Centers.

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

Social & A ; Environmental Responsibilities

As a public public-service corporation, SGC 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.

MAJOR ENERGY CRISIS FEARED

Pakistan is most likely to confront a major energy crisis in natural gas, power and oil in the following three to four old ages that could choke the economic growing for many old ages to come, Partially contributed by gas deficits, the power deficit is expected to be small over 5,250MW by 2010, the oil demand would besides increase by over 23 % to approximately 21 % million dozenss in 2010.

This would go forth a entire shortage of about nine million dozenss of Diesel and furnace oil imports, Since the gas deficits were expected to be much higher, the state would necessitate to heighten its dependance on imported oil, therefore increasing force per unit area on foreign exchange state of affairs.

Last twelvemonth ‘s oil import measure amounted to about $ 6.5 billion compared with approximately $ 3.5 billion in 2004-05, chiefly because of higher international oil monetary values – a load expected to be even higher in future as a consequence of turning Middle East crisis. Harmonizing to the former curate, the authorities had planned five major enterprises to run into these energy demands. They included three gas import grapevines, Gwadar port as energy hub and LNG import. However, four of these steps, including the three import grapevine undertakings, show no marks of advancement for assorted grounds while concentration on energy installations in Gwadar would chiefly depend on security state of affairs, besides oil and gas import grapevines.

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.

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 to11,092mmcfd 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.

Iran Pakistan India ( IPI ) Pipeline Project

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 SGC 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

Recommendation

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 SGC 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.

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

Focus on improved, friendly and efficient client services.

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

Improve in the quality of exigency response system.

Better the quality of human resource through calling planning, preparation of 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.

Community support services and corporate communicating enterprises 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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