SNGPL Incurred UFG Losses Worth Rs.18.2 Billion Between 2012-2015

A performance audit report has revealed that Sui Northern Gas Pipelines Limited (SNGPL) incurred unaccounted for gas (UFG) loss worth Rs.18.2 billion during the financial years 2012-2015.

The report was presented before the National Assembly on Monday. The report aimed to confirm the authenticity of the losses claimed by the SNGPL and evaluated the reasons for these losses and assessed the management’s loss reduction plan.

As per the report, the UFG losses of SNGPL have been recorded at 11.7 percent, 10.57 percent, and 10.97 percent in 2012-13, 2013-14, and 2014-15 respectively. Whereas, the Oil and Gas Regulatory Authority (OGRA) only allowed losses of 4.5 percent in these years.

“The excessive percentage of UFG losses had adversely affected the financial position of the company as it sustained losses of Rs.9.749 billion, Rs.3.965 billion and Rs.2.495 billion in 2012-13, 2013-14 and 2014-15 respectively,” states the report.


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The audit report concluded that the losses claimed by the SNGPL were not based on facts. It stated that the reconciliation of gas received and sold was not done properly and the loss claims for non-consumers has no credibility. Moreover, the supplier company lacked vigilance with respect to suspected customers.

The audit also found that theft charges were recorded at an inflated rate. The non-consumer volume was claimed at Rs. 8.8 billion in 2012-13 to 2014-15. However, the claim lacked credibility.

Notably, SNGPL’s claimed UFG losses amounted to Rs. 9.8 billion while OGRA allowed only 75 percent of the claimed losses. The remaining claim remains pending with the government.

Furthermore, SNGPL had shown operational fixed assets at a higher side. It had taken claims from OGRA regarding the final revenue requirements of FBR in 2012-13, 2013-14, and 2014-15.



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