1.0 Introduction of Organization

1.1 Nature of Organization

Sui Northern Gas Pipelines Limited is the largest integrated gas company serving more

than 2.7 million consumers in north central Pakistan through an extensive network in

Punjab and North West frontier province. The company has over 43 years of experience

in operation and maintenance of high pressure gas transmission and distribution system.

It also has expanded its activities to undertake the planning, designing and construction of

pipelines, for both itself and other organization.

Sui Northern Gas Pipelines Limited in a region of the nation that has a rapidly growing

demand for natural gas and power generation due to significant industrial development.

1.2 Natural GasNatural gas, as the name implies, is found in gaseous form naturally, underground at

varying depths and geographical formations. It is one of the most abundant energy

sources in Pakistan, and because it is produced domestically, it is not subject to foreign

disruptions of price or supply. Comprised primarily of methane, natural gas is odorless

and colorless when it comes out of the ground. After impurities are removed, the natural

gas is introduced into the pipeline system where it is transported to the consumers.

Prior to distribution, a harmless odorant is added to the gas so any leakage can be easily

detected before an unsafe situation occurs. In addition to this "rotten egg" odor, natural

gas has some built-in safety features. It is lighter than air, so it will rise and dissipate into

the atmosphere in the event of a leak. And it has a very narrow combustion range,

igniting only when mixed with air at a ratio of between 4 and 14 percent. Any mixture

higher or lower than that range and natural gas simply won't burn. It also requires a very

high degree of heat, at least 1200 degrees Fahrenheit, before it will ignite.

Once combustion occurs, natural gas is one of the cleanest-burning fuels available today.

When it is burned properly, the only emissions are carbon dioxide (which is what we

exhale when we breathe) and water vapor. Because of its clean-burning properties,

natural gas has become the environmental fuel of choice for many residential,

1

commercial and industrial applications. Such applications include: space heating, water

heating, cooking, and as a fuel for fireplaces, vehicles, power plants, commercial and

industrial boilers, as well as commercial and industrial processing.

1.3 Establishment of OGRA

The federal government promulgated the natural gas regulatory authority ordinance in

January 2000 based on the bill already passed by the national assembly in1999. Under the

ordinance, natural gas regulatory authority ordinance was established to regulator the

transmission, distribution and sale of natural gas, including determination of gas tariffs of

the companies with the prime objective of safeguarding the consumer's interest. later,

federal government decided to enlarge the scope of natural gas authority and

consequently the oil & gas regulatory authority ordinance was promulgated in march,

2002 which included the technical regulations of refineries, oil storages, oil pipelines, oil

marketing companies, compressed natural gas and liquefied petroleum gas and natural

gas regulatory authority ordinance was subsumed in oil & gas regulatory authority.

consequent upon oil & gas regulatory authority was establishment on 28th march, 2002

and with effect from march 15, 2003 federal government assigned to oil and gas

regulation authority for the regulation of liquefied petroleum gas and compressed natural

gas sectors in the country and has designated the oil & gas regulatory authority as an

authority in place of the director general (gas) of the ministry of petroleum and natural

resources. ten main gas companies are working in Pakistan under the oil & gas regulatory

authority,

1. Sui Northern Gas Pipelines Limited.

2. Sui Southern Gas Company Limited.

3. Oil and Gas Development Company Limited (Such Gas Field).

4. Oil and Gas Development Company Limited (Bhal Syedan Field).

5. Oil and Gas Development Company Limited (Nandpur & Panjpir Fields).

6. Central Power Generation Company Limited.

7. Engro Chemical Pakistan Limited.

8. Fuji Fertilizer Company Limited.

9. Pakistan Petroleum Limited.

10. Meri Gas Company Limited

2

1.4 Overview of organization

I am discussing about the sui Northern Gas Pipelines Limited, which is working in

province Punjab and north west province. Sui Northern Gas Pipelines Limited was

incorporated as a private company in June 1963 with the object of transmission and

distribution of natural gas in Punjab, North West frontier province, and the federal capital

area. Sui Northern Gas Pipelines Limited was later converted into a public limited

company in January 1964 under the companies act 1913 (now companies ordinance

1984), and is listed on three stock exchange of the company. The company took over the

existing Sui-Multan system (349 Kms of 16 inch and 129 Kms of 10 inch diameter

pipeline) from Pakistan industrial development corporation and Dhulian-Rawalpindi-

Wah system (132 Kms of 6 inch diameter pipeline) from Attock Oil Company limited.

the company's commercial operations commenced by selling an average 47 MMCFD gas

in two regions viz. Multan and Rawalpindi, serving a total number of 67 consumers. Sui

Northern Gas Pipelines Limited is the largest integrated gas company with an existing

transmission system of 6,195 Kms and distribution system of 46871 Kms. The company

serves more than 2.7 million consumers in north central Pakistan through an extensive

network in Punjab and North West frontier province. The company has over 43 years of

experience and maintenance of high pressure gas transmission and distribution system. it

has also expanded its activities to undertake the planning, designing and construction of

pipelines, both for itself and other organizations.

1.5 Company Profile Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company

serving more than 3.4 million consumers in North Central Pakistan through an extensive

network in Punjab and NWFP. The Company has over 46 years of experience in

operation and maintenance of high-pressure gas transmission and distribution systems. It

has also expanded its activities to undertake the planning, designing and construction of

pipelines, both for itself and other organizations. SNGPL operates in a region of the

nation that has a rapidly growing demand for natural gas and power generation due to

significant industrial development.

SNGPL was incorporated as a private limited Company in 1963 and converted into a

public limited company in January 1964 under the Companies Act 1913, now Companies

3

Ordinance 1984, and is listed on all the three Stock Exchanges of the Country.

SNGPL transmission system extends from Sui in Baluchistan to Peshawar in North West

Frontier Province (NWFP) comprising over 7,347 KM of Transmission System (Main

lines & Loop lines). The distribution activities covering 1,624 main towns along with

adjoining villages in Punjab & NWFP are organized through 8 regional offices.

Distribution system consists of 67,449 KM of pipeline.

SNGPL has 3,451,142 consumers comprising Commercial, Domestic, General Industry,

Fertilizer, and Power & Cement Sectors. Annual gas sales to these consumers were

584,895 MMCF worth Rs. 168,933 million during Jul 08 - Jun 09.

1.6 Company Overview

Regional Establishment Administrative Structure Organizational Structure

1.6.1 Regional Establishment

Sui Northern Gas Pipelines Limited was incorporated as a private company in June 1963

with the object of transmission and distribution of natural gas in Punjab, North West

frontier province, and the federal capital area. Sui Northern As Pipelines Limited was

later converted into a public limited company in January 1964 under the companies act

1913 (now companies ordinance 1984), and is listed on the three stock exchanges of the

company.

In Sui Northern Gas Pipelines Limited, three main departments are working.

1. Transmission.

2. Distribution.

3. Project.

1.6.1.1 Transmission

basically on operational out lift, the company handles the entire operation of a lengthy

network of high pressure gas lines comprising 6195 km in length, varying from 6 inch to

36 inch of diameter in accordance with the mineral gas safety rules, oil and gas regulatory

authority regulations and international gas transmission industry's standards.

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1.6.1.2 Distribution

The company's business strategy is to maximize sales of gas by entering in to new areas

through development/expansion of its infrastructure. in accordance with the policy of

government of Pakistan. The company has focused on country's economic revival by out

reaching industries for gas supply. During the last fiscal year, the company has provided

a record number of 531 industrial gas connections resulting in displacement of imported

liquid fuels to save precious foreign exchange.

The share of natural gas in Pakistan’s energy supply mix has increased from 41 % to 51“,

whereas that of oil has decreased from 43 % to 29 % during the last three years. The

company has its gas distribution network in 831 difference towns and villages of Punjab

and North West frontier province. As on June 30, 2006, the total length of distribution

network of Sui Northern Gas Pipelines Limited stands at 46964 km.

1.6.1.3 ProjectSui Northern Gas Pipelines Limited, as contractor, carried out construction of pipelines

8” dia, 20 km Badar gas field to Qadir pur field. Similarly an engineering, procurement

and construction. Contract was successfully executed from M/s. MOL Pakistan in the

shape of 10” dia, 8.75 km Makori-Kharrapa, and gas pipelines. During the year, the

company successfully completed various mega projects like gas supply to Murree, Kot

Radha Kishan, Lilla town (through CNG) and many other projects in difference regions

of Punjab and the North West frontier province.

The company has planned to undertake the project of gas supply t various southern

districts of north west frontier province (with estimated cost of rs.2.1 billion) viz Hangu,

Karak, Lakhi, Bannu, Dera Ismail Khan, Tank and southern district of Punjab (with

estimated cost rs.3.7 billion) viz Hasilpur, Chishtian, Mandi, Bahawalnagar, Burewala,

Pak Pattan, Haroonabad, Duniapur, Karor Pakka, Vehari, Tibu Sultan, Khairpur

tammawali, Yazman, Minchinabad and Fort Abbas through construction of transmission

lines of 315 km and 115 km, respectively and distribution supply mains of 460 km.

5

6

1.7 Administrative Structure

Policy guidelines and overall control is vested in the elected Board of Directors as provided for in the Companies Ordinance 1984

1.8 Organizational structure

Head office of the company is situated in Lahore, chairman, managing director, other

departmental senior general managers and all directors offices are there. They control all

the areas offices from there. All the financial and non financial matters i.e. credit from

bank casting budgeting, allocation of funds matter, taxes, training to employees etc, are

made under the supervision of the chief financial officer. Company has the separate

internal audit department. The audit department checks that the work is being done

according to the company policies, departmental procedures. The audit department

periodically conducts the audit of different departments but on the other hand the audit

department transfers the pre-audit function to the accounts department of limited

payments. Chief financial officer is being appointed according to the clause (xv) of “code

of corporate governance” by Securities and Exchange Commission of Pakistan. Audit

committee is being established according to the clause (xxx) of “code of corporate

governance” by securities exchange commission of Pakistan. These committees are

established for the purpose of improving transparency and discourse in financial

reporting of companies and for improving their governance to protect the interests of

investors.

Board of directors is elected by the share holder of the company. The managing director

and the chief executive officer of the company is working under umbrella of board of

directors. The board of directors who made the decision for the entire satisfaction of the

investors as well as the consumer. Other the senior general managers are working under

the deputy managing director who directly reports to the managing director and chief

executive officer.

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SNGPL EXECUTIVE GRADING

8

GRADE RANK/DESIGNATION

1-3 OFFICERS

4 EXECUTIVE OFFICERS

5 SENIOR EXECUTIVE OFFICERS

6 DEPUTY CHIEF OFFICER

7 CHIEF OFFICERS

8 GENERAL MANAGERS (G.M)

9 SENIOR GENERAL MANAGERS (SMG)

1.9 RegulationsRegulatory Regime comprises of:

Code of Corporate Governance.

Oil & Gas Regulatory Authority Ordinance (XVII of 2002) dated 28th March 2002

Natural Gas Regulatory Authority (Licensing) Rules 2002 dated 26th February 2002.

Natural Gas Tariff Rules 2002 (Draft – 5 July 2002).

Such other Rules and Regulatireons which the Oil & Gas Regulatory Authority

(OGRA) may prescribe.   Under the existing pricing and regulatory regimes, following

operating conditions have been laid down:

Allocation of gas from different sources is made by GOP while the wellhead prices

are fixed by the OGRA per Petroleum Concession Agreements/contracts.

Consumer selling price including sales to major consumers (i.e. power, fertilizers etc)

are notified by the GOP/OGRA.

SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in operation

(ROA) for meeting financial charges, taxation and a reasonable return to the

shareholders.

9

The prescribed price i.e. the price which the company is allowed to retain out of

consumers selling price to meet the covenanted rate of return, is determined by OGRA.

1.10 Statements Core Values Objectives Vision & Mission Statements

1.10.1Core Value

COMMITMENT

We are committed to our vision, mission, and to creating and delivering

stakeholder value.

COURTESY

We are courteous - with our customers, stakeholders and towards each

other and encourage open communication.

COMPETENCE

We are competent and strive to continuously develop and improve our

skills and business practices.

RESPONSIBILITY

We are responsible as individuals and as teams - for our work and our

actions. We welcome scrutiny, and we hold ourselves accountable.

INTEGRITY

We have integrity - as individuals and as teams - our decisions are

characterized by honesty and fairness.

1.10.2 Key Objectives

Sui northern gas pipelines limited committed for;

1. Enhancement of System Capacity

2. Expansion of Transmission and Distribution Network.

3. Increase in Gas Sales.

4. Rehabilitation of Transmission and Distribution Network.

5. Reduction in Unaccounted for Gas Losses.

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6. Improvement in Profitability.

7. Improvements in Consumer Services.

8. Adoption of Information Technology.

9. Human Resource Development.

10. Pursue Pipelines construction and Advisory Business

1.10.3 Vision Statement

To be the leading integrated natural gas provider in the region seeking to improve the

quality of life of our customers and achieve maximum benefit for our stakeholders by

providing an uninterrupted and environment friendly energy resource.

1.10.4 Mission Statement

A commitment to deliver natural gas to all door steps in our chosen areas through

continuous expansion of our network, by optimally employing technological, human and

organizational resources, best practices and high ethical standards.

1.11 Board of Directors

Mian Misbah-ur-RehmanChairmanMr. Aamir Tufail Chief Executive/Managing DirectorMr. Dr. Faizullah Abbasi DirectorMr. Mansoor Muzaffar AliDirectorMr. S. M. AsgharDirectorMr. Muhammad Iqbal Awan DirectorMr. A. Samad DawoodDirector

Mr. Abdul Bari KhanDirectorMr. Tariq Iqbal KhanDirectorMian Raza ManshaDirectorMr.Inam ur RahmanDirector

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Malik Tahir Sarfraz DirectorJoint Secretary (Admin), Ministry of Petroleum & Natural Resources Mr. Syed Zahir Ali Shah

Director

1.12 Profile of Employees

As on monthly report of August, 2009 there are 6994 employees are working in which

6652 employees are working as an operation, and 342 employees are working as a

project.

Years Operation Project Total2005 6904 264 71682006 6852 249 71012007 6712 209 69212008 6916 224 71402009 6652 342 6994

The other department wise details are as under: (under the August, 2009)

Department Executive Subordinate TotalMANAGEMENT 5 7 12DMD 3 5 8SGM (HR) 2 2 4CFO 1 0 1SGM (ES)2 2 2 4ACCOUNTS 67 317 384

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LOGISTIC SUPPORT 49 544 593AUDIT 32 39 71BILLING 67 866 933CIVIL CONST 3 74 77COMPRESSION 40 249 289CORP. AFTER 6 12 18DISTRIBUTION 123 2109 2232FINANCE 13 20 33IT/MS 37 82 119H.S & ENV 4 2 6TRAINING & DEVELOPMENT 5 0 5LEGAL 4 10 14METERING 11 221 232PLANNING & DEVELOPMENT 9 5 14HUMAN RESOURCE OPS 11 32 43PROJECTS 42 127 169PURCHASE & STORE 41 245 286QUALITY & CONTROL 9 109 118SALES 45 292 337TELECOM 17 51 68TRANSMISSION 79 593 672UFG CONTROL 8 7 15CORROSION 28 209 237TOTAL 763 6231 6994

HUMAN RESOURCE AT FUNCTIONAL LEVEL

Sui Gas Company Limited is engaged in the transmission and distribution of natural gas

in Pakistan. It is also engaged in the construction of high pressure transmission and low

pressure distribution systems. The Company is involved in certain activities related to the

gas business, including the purchase and sale of gas meters, and construction contracts

for lying of pipelines. The company is in growth mode and they are expanding their

business day by day by starting new projects, for starting new projects they required new

employees who can work on their projects that are why their demand is high as

compare to the supply.

PATTERN OF JOB ANALYSIS

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They are in growth mode and expanding their business, so Job analysis is done when they

have to start new projects; they collect data about the jobs performed in an organization

by performance management system, they prepare job descriptions according to the new

project and measure the key performance of the employees. And find out where they

need new employees.

Data collection method:

Company is using following methods:

Interview Observation

Interview:

Employees about a particular job are interviewed about the specific work

activities that the job comprises. This interview is done by the supervisors and

chief in charges at subordinate level. While executive level and officer level

employees are interviewed by chiefs and head of the department sometimes

depending upon the nature of the job.

Observation: This method is adopted at blue collar jobs like for welders, meter readers, pipe

fitters etc. This observation of work is done by immediate supervisors to evaluate

the working capacity and technique of the worker.

JOB DESIGN

In SNGPL two basic approaches are used for designing the jobs of the employees:

Job rotation

Job enrichment

Job Rotation:

As the term suggests, job rotation is concerned with the action of enabling employees to

switch job roles or functions for a period of time. The overall goal is to develop the

individuals so that they have increased their skills, knowledge and experience by the end

of the process. SNGPL is using this approach from past 10 years.

Job Enrichment:

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Job enrichment includes a number of different workplace practices, such as quality

circles, self-directed teams, job rotation, information sharing and others. One possible

motivation for adopting such practices is to challenge and motivate workers, and to

encourage them to participate in improving productivity, safety, and the quality of their

product.

2.0 Business Operation

2.1 Product Line

Although the company sales only natural gas. The main source through the Sui Northern

Gas Pipelines Limited is obtaining gas PPL (Pakistan Petroleum Limited). However, if

we think there are two types of gas.

1. Liquid Petroleum Gas (LPG)

2. Compressed Natural Gas (CNG)

There details are as under;

2.1.1 Liquid Petroleum Gas (LPG)

Liquid petroleum gas it is used for filling cylinders and it is liquid from gas. Before

filling the cylinders, the gas temperature is reduced and then fills the cylinders, which

used for domestic purpose, welding purpose etc

.

2.1.2 Compressed Natural Gas (CNG)

Now a day every one knows about this type of gas. It is using in vehicles; it is filled

through compressed function and fill in specific pressure.

2.2 Main offices of Sui Northern Gas Pipelines Limited

Head office Lahore

Gas house

15

21 Kashmir road,

P.O.boxno.56,

Lahore- 54000, Pakistan.

Ph: (+92-42) 99080000 & 99082000

Facsimile: (+92-42) 99201369 & 99201302

Website: www.sngpl.com.pk

Faisalabad

Sargodha road.

Ph: 041-9210033-35

Fax: 041-9210037

Islamabad

28-30 sector 1-9, industrial area.

Ph: 051-9257710-19

Fax: 055-9257770

Lahore

21- industrial area

Gurumangat road, gulberg III

Ph: 042-99263361-80

Fax: 042-99263400

Multan

Piran ghaib road.

Ph: 061-9220081-86

Fax: 061-9220090

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2.3 Core Business

2.3.1 Gas Sources

DESCRIPTION Total (MMCF) Avg/Day (MMCF)BALOCHISTAN

Sui(SML) 139,795 383Sui(SUL) 10,160 27.84Pirkoh+Loti 15,664 42.92TOTAL 165,619 453.76

PUNJABDhodak 2,120 5.81Meyal 518 1.42Dhurnal  149 0.41Dakhni 17,279 47.33Adhi 14,355 39.33Bhanghali  54 0.15Sadqal 723 2Ratana 366 1Pariwali 5,166 14.15Pindori 653 1.78Dhullian 692 1.9Salsabil 13,807 37.82TOTAL 55,882 153.1

N.W.F.PChanda  2,608 7.14Mela 5,775 15.82Makori 8,865 24.3Gurguri 12,949 35.5TOTAL 30,197 82.76

SINDHHassan 5,414 14.83

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Zamzama 68,735 188.32Sawan  89,453 245.1Tajjal 4,027 11.03Qadirpur 175,589 481Qadirpur(RAW GAS) 15,247 41.77Qadirpur (DEHYDRATED) 8,345 22.86Kandhkot 21,464 58.8Chachar 3,401 9.32Rehmat 4,513 12.36Badar 5,272 14.44TOTAL 401,460 1,100GRAND TOTAL 653,157 1,789

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2.3.2 Transmission System Year Wise Increase in Transmission System

 Transmission Network Map

 Segment-Wise Transmission Break-up

 Province-Wise Transmission Breakup

2.3.2.1 Year Wise Increase in Transmission System

Year  Kms% Age Increase Over

Previous Year% Age Increase

from 19931993 3,311 - -1994 3,614 9.15% 9%1995 3,865 6.95% 17%1996 4,243 9.78% 28%1997 4,687 10.46% 42%1998 4,920 4.97% 49%1999 5,112 3.90% 54%2000 5,217 2.05% 57%2001 5,122 -1.82% 55%2002 5,405 5.53% 63%2003 5,759 6.55% 73%2004 5,776 0.30% 74%2005 6,121 5.97% 84%2006 6,195 1.20% 87%2007 6,625 6.94% 100%2008 7,016 5.90% 112%2009 7,347 4.50% 122%

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2.3.3 Distribution System

 Gas Distribution Capacity

 Distribution Network

2.3.3.1 Gas Distribution Capacity The Distribution System Capacity as on 31.12.2009 is as follow. 

SR. No. REGIONCAPACITY (MMCFD)

TOTAL CONTRACTED AVAILABLE1 Bahawalpur 306 236 702 Multan 610 471 1393 Faisalabad 530 408 1224 Lahore 909 885 245 Gujranwala 316 258 586 Islamabad 381 223 1587 Peshawar 237 172 658 Abbottabad 150 134 16

TOTAL 3439 2787 652 The Distribution System Capacity as on 30.06.2009 is as follow. 

SR. No. REGIONCAPACITY (MMCFD)

TOTAL CONTRACTED AVAILABLE1 Bahawalpur 205 234 -292 Multan 596 465 1313 Faisalabad 514 396 1184 Lahore 821 865 -44

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5 Gujranwala 300 240 606 Islamabad 370 213.5 156.57 Peshawar 229 166 638 Abbottabad 148 131.6 16.4

TOTAL 3183 2711.10 471.90

2.3.3.2 Distribution Network

Year Wise Increase In Distribution Network (Status as on 29.02.2008)

2.3.4 Year Wise Increase in Gas Consumers

Year Wise Increase in Gas Consumers as on 29.02.2008

Year No. of

ConsumersIncrease from Previous Year

% Age Increase Over Previous Year

1997-98 1,637,803 - -1998 -99 1,747,320 109,517 7%1999 -00 1,887,009 139,689 8%2000-01 1,986,583 99,574 5%2001-02 2,113,847 127,264 6%

Year  KmsIncrease Over the Previous

Year% Age Increase

1998 28,661 - -1999 29,954 1,293 4%2000 31,477 1,523 5%2001 32,825 1,348 4%2002 34,093 1,268 4%2003 35,814 1,721 5%2004 38,284 2,470 6%2005 42,192 3,908 9%2006 46,671 4,479 10%2007 51,866 5,195 10%2008 57,395 5,529 10%

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2002-03 2,208,968 95,121 4%2003-04 2,340,872 131,904 6%2004-05 2,516,795 175,923 8%2005-06 2,723,225 206,430 8%2006-07 2,953,818 230,593 8%2007-08 3,102,667 148,849 5%

2.3.5 Year Wise Increase in Gas Sales

Year  KmsIncrease from Previous Year

Vol. in MMCF % Age1998-99 253,104 - -1999-00 284,338 31,234 11%2000-01 308,111 23,773 8%2001-02 321,957 13,846 4%

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2002-03 341,643 19,686 6%2003-04 452,338 110,695 24%2004-05 537,086 84,748 16%2005-06 571,481 34,395 6%2006-07 576,658 5,177 1%

2.3.6 Projects

Sr. No Activity DIA (Inch)Length (KM)Commissioned On

1D.G Cement Line (Dera Ghazi Khan)

8 26.00 03.01.2006

2 Shakardara- Lachi Line 8 25.50 06.08.2005    TOTAL 51.50  

Budgeted Cost (Million Rs.)

2.3.7 Construction Activities in Progress

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  Sr. No

ActivityDIA

(Inch)Length (KM)

Commissioned On

1 Rawat – Murree Line 12 58.00 77%2 Sukho – Rawat Line 16 35.50 23%

3Choa – Bestway Cement- D.G Cement –Chakwal Cement Line

10 23.00 98%

4 Makori Line for M/s MOL Pakistan 10 9 -

5Badar Gas Field – Qadirpur Gas Field Line for M/s Pakistan Explorations Ltd.

8 20.50 99%

    Total 145.50  Budgeted Cost (Million Rs) 1125.00

2.3.8 Upcoming Construction Activities 

Sr. No ActivityDIA

(Inch)Length (KM)

Commissioned On

1 Hattar – Abbottabad Line 16 62.50

Procurement of Material / Acquisition of Land and Preparation of Design Drawings in progress

2Mian Channun – Hasilpur Line

12 90.00 As above

3Hasilpur – Chistaian Mandi Line

8 35.00 As above

4 Lachi – Manjuwala Line 12 85.00 As above5 Hangu Line 8 35.00 As above6 Manjuwala – End Point Line 8 195.00 As above

Total 502.05  Budgeted Cost (Million Rs) 4200.00

2.3.9 Future Projects

The conceptual study of Project-IX is underway to carry maximum gas beyond Multan ,

to facilitate gas consumers from all walks of life in central Punjab and Northern areas of

the country. The basic intent of Project-IX is the elimination of bottle necks in SNGPL’s

existing transmission network and to transport gas to independent Power Plants in Punjab

province, through system up-gradation with loop lines and system compression

enhancement, beside construction of pipelines to absorb additional gas available from gas

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sources of Potohar region and newly discovered Gurguri-Makori field in Karak District

of NWFP province

2.3.11 Bill types

There are different four types of bill.

1) Normal Bill

2) Provisional Bill

3) Minimum Bill

4) Estimated Bill

2.3.11.1 Normal Bill

Bill is issued as per meter reading supplied by the meter reader and calculated as per rates

provided by govt. for all categories of consumer. Pressure factor is applied for the

calculation of volume of gas consumed for commercial consumers, while pressure,

temperature & super compressibility factor is also applied to work out volume of gas

consumed by Industrial / bulk supply consumers.

2.3.11.2 Provisional bill

When meter reading could not be recorded due to following reasons, a Provisional Bill is

issued to the consumer.

1) Index glass dirty/misty.

2) Water inside meter.

3) Meter covered with dust.

4) Meter covered with bushes.

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5) Meter under rain water.

6) Meter installed above normal height.

7) Meter position is not approachable.

8) Meter locked inside the premises.

9) Dog at site.

10) Not allowed by the consumer.

11) Premises not found.

These 11 reasons are recorded by meter reader and reflected on your monthly bill.

Provisional bill amount is 110% of the previous bill.

Provisional bill amount is adjusted in next normal bill when proper reading is provided.

2.3.11.3 Minimum bill

Bill is charged as minimum due to zero consumption of gas. Bill is charged as minimum

due to the gas consumption below the minimum consumption limit as per Govt.

notification of minimum charges as defined below (without Meter Rent/GST):

Domestic Rs. 99.74

Commercial Rs. 1046.96

Special Domestic Rs. 99.74

General Industry Rs. 6646.43

Cement Industry Rs. 7657.34

Bulk Domestic Rs. 406.69

It is subject to change

2.3.11.4 Estimated bill

Estimated Bill is charged due to any violation of Gas Connection Rules & Regulation

such as theft or if meter is sticky (Out of Order) and is unable to record the gas passing

through it.

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Bill is charged on seasonal annual consumption. In this case average of previous year's

seasonal consumption is used.

There are two types of seasonal average:

Summer Average = Average of ( Mar to Nov).

Winter Average =Average of (Dec to Feb).

CHAPTER NO.5

SWOT ANALYSIS

27

5.1 SWOT ANALYSIS

5.1.1 Internal and External factors .

The Internal component of Analysis is concerned with the basic

strengths and weaknesses of the organization. Thus, it depicts the

internal environment of the company. The strengths of the company may

be its financial or human resources, processes, operational methods,

marketing strategies, segmentation techniques or any expertise that the

company may feel as its core competencies. Contrary to this, any

discrepancies in these factors, at the same time, may become the

weaknesses of the company. Hence, it is the internal environment of the

company that shapes its business strategies and provides direction to

survive in the marketplace.

The external component deals with the factors that the company faces in

its external competitive environment. These factors are categorized as

opportunities available for the company in the market place and the

threats strained by its competitors. The opportunities of the company

may by its ability to satisfy the ever arising needs of its customers better

than its competitors, new available markets, room for setting new

operations, falling of barriers due to globalization trend etc. If a firm fails

to avail the opportunities as soon as they arrive, these opportunities

become threats for that company. This is because your competitors will

28

avail that opportunity in their first attempt and attain first mover

advantage over you.

SWOT Analysis is a popular technique used to analyze some company’s

present business situation. It provides us with an overview of company’s

major strengths and its critical weaknesses. The external opportunities and

threats that the company faces in the external environment are also

highlighted in this approach.

5.2 SWOT Analysis

5.2.1 Strengths:

Government Organization

High Cumulative Customer retention rate since the start of operations

Sustained growth rate of annual sales turnover.

Consistent Quality

Vertically integrated.

Excellent market image in the local and international market.

Highly qualified management.

Adequate financial resources.

Adopting information technology.

Skilled Labor.

Broad and motivational vision.

5.2.2 Weaknesses:

High employee turnover

Low production capacity.

De-motivated Staff.

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Less promotional activities.

Non-Corporative culture.

Insufficient benefits for the employees.

Stereotype machinery for processing.

Communicational gap among different departments.

No Proper Training to employees

Manual Work

Mineral Stocks

5.2.3 Opportunities:

Can expand its division such as finding new minerals

Can reduce the cost by proper utilization of resources.

Can hire well-educated and experienced staff.

5.2.4 Threats:

New plans to take gas from outside the country

Buyer need and demand changes.

Political instability.

Changing geopolitical situation.

Change of government policies.

Less stocks of minerals

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CHAPTER NO.6

CONCLUSION AND RECOMMENDATION

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6.1 CONCLUSION

The company earned Rs 1,730,240 thousand pre tax profit, which is decrease than the last

year. The revenue from sales was Rs 160,714,737 thousands during the year, which is

also decrease than the previous year. This year the company has taken a tax refund of Rs

799,704 thousands from the tax authority on different accounts. Company’s current ratio

also decreased 1.19 to 0.82 further more the company has tried its best optimize

utilization of all its available resources to the maximum level resulting in improvement of

the inventory turnover ration from 218.48 To 231.27 the company need to be taken

effective measures to recover its old situation and improve its financial position.

6.2 RECOMMENDATIONS

Before joining this organization I know a little about the organization work, its working

system and environment, so I learned a lot from this experience. Based on my experience

& observation regarding the operations and policies of organization, there are some

recommendations which include short term as well as long term issues for the

improvement.

6.2.1 Assess the Performance of employees

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There is no efficient method introduced by organization for his assessment of

performance of employees. Promotions are completely relying on higher management

like managers .’s there can be some sort of favoritism. So to avoid all this, there should

be a proper method to judge the employees.

6.2.2 Improve Information Technology System

Sui Gas Northern Ltd. should immediately improve its Information Technology System.

The soft wares currently in use should be made error free as it is the need of the hour.

6.2.3 Computerized Accounting System

As far as accounting is concerned, although the entire system is computerized, but there

still involves lots of paperwork. So this should be minimized b acquiring more advanced

accounting software

6.2.4 Job Rotation

There is no rotation of employees within departments and cross departments. So the top

management should immediately start thinking in terms of rotating the employees in

various departments, as this transforms work force into human capital.

6.2.5 Distribute Work Equally

Management should distribute work equally among different employees. Some of the

employees are overburdened while some sections are overstaffed.

6.2.6 Improve its Website

Sui Gas Northern Ltd needs to improve its website. More information relating to financial

performance and sale of the organization should be available on the website.

6.2.7 Evolve Management Policy

Sui Gas Northern Ltd should evolve a very serious management policy to attract multi

national corporations as its clients. This action, if actualized, would not only prove to be

highly profit generating, but it would also contribute a lot towards Gohar Textile image

building.

6.2.8 Advertise

One of the most pressing needs of the time is to advertise Sui Gas Northern Ltd in the

electronic media. Sui Gas Northern Ltd has not, till date, employed advertisement in

electronic media as a full fledge marketing tool. I think it is high time that organization

does this

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6.2.9 Market Survey

The management should make the market survey time to time to get more and latest

information about the market factors like the price, demand, current consumer trends etc.

Reference and source used

The following sources are used for preparing this internship report1- Annual Report 2007, 2008, 20092- Monthly report of financial year 2007,2008, 20093- Sui Northern Gas website (www.sngpl.com.pk)4- Staff Members of Sui Gas Northern

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