Being one of the country’s two premier gas utilities, Sui Southern Gas Company (SSGC) manages gas transmission and distribution in its franchise provinces of Sindh and Balochistan, with a network spanning a massive 55,000 kms. The Company caters to 3.2 million customers, including 4,500 industries.

Historically, SSGC suffered from a host of external and internal challenges and the gas utility’s financial statements were not finalized for several years. Losses continued to accumulate, and Unaccounted-for-Gas (UFG) or line losses had become uncontainable. Cumulative inter-enterprises liabilities swelled, resulting in gas sector circular debt that ran into more than a trillion Rupees. Meanwhile, the depleting indigenous gas reserve situation worsened the condition.

In this bleak scenario, a firm commitment had to be made to introduce extensive changes, and transform the culture of the organization to deliver positive results. Relentless efforts needed to be channelized towards developing and implementing a new corporate strategy to make SSGC operationally and financially sustainable.

Besides strengthening the Company’s financials, the priority before the Company’s Board and Management was to deal with legacy issues, lift the financials, drastically reduce UFG, reform HR systems and pursue business diversification. Exemplary leadership, along with strategic foresight was indispensable to steer the Company through economic headwinds, regulatory challenges, and sectoral transformation.

Strategic UFG Reduction and Operational Excellence

A cornerstone of the agenda was the consistent and focused reduction of UFG which is critical for sustainable growth, financial well-being, and positive investments. Backed by a comprehensive and improved strategy, UFG reduction plan and institutional framework was restructured to allow for coordinated and holistic action at the zonal level.

SSGC management has been undertaking extensive initiatives to improve its bottom line through vigorous and sustainable reduction in UFG. Targeted efforts in FY 2023-24 contributed to a year-over-year reduction in UFG, resulting in a cumulative reduction of over 40 BCF of UFG from FY........

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