SSGC considers selling its distribution network in Karachi – Alfalah Securities Limited

Karachi, January 07, 2013 (PPI-OT): Sui Southern Gas Company (SSGC) is considering privatizing its gas distribution network in Karachi in order to minimize gas losses and better recovery.

According to Alfalah Securities Limited, in this regard, SSGC would separate the distribution lines of domestic, commercial and industrial sectors to improve gas management. The gas supply is currently at 4.2 bcf as against the demand of 8.0 bcf which has created acute shortage of gas and requires stringent management. The situation has resulted in gas supply suspension to industries and CNG stations and reduction in supply to Karachi Electric Supply Company (KESC). The privatization of SSGC’s distribution network is likely to benefit SSGC by being able to lower its UFG losses and improve liquidity situation of the company due to improved recovery of dues.

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