By an OGJ correspondent
KARACHI, Oct. 17 -- Karachi-based natural gas utility Sui Southern Gas Co. (SSGC), which supplies gas to Sindh and Baluchistan provinces, Pakistan, reported that it has launched its second 5 year gas Infrastructure Rehabilitation and Expansion Project (IREP-II) to increase its gas network capacity to 1,800 MMcfd from 1,200 MMcfd by 2007-08. SSCG's earlier completed a $55 million IREP-I that increased transmission capacity to 1,200 MMcfd from 600 MMcfd.
Managing Director Munawar Baseer Ahmad said at a presentation in Karachi Thursday that major components of the new $297 million project includes bypassing 13 km of 18-in. pipe on the Quetta pipeline in Dingra Nalas and 9 km of 30-in. pipeline from HQ3 to SMS Sindh University. It also includes replacement of 500 km of 18-in. aboveground pipeline and looping of 296 km of 24-in. Sanghar-Hyderabad-Karachi pipeline, with compression, 140 km of 18-in. on the Golarchi-Karachi pipeline, and 106 km of 30-in. Bajara loopline. SSCG also will rehabilitate 64 km of 12-in. pipe on the Zarghun-Quetta pipeline.
The company currently is supplying 950 MMcfd of gas and transporting another 250 MMcfd to Sui Northern Gas Pipelines Ltd., the gas authority that supplies gas to Punjab and Northern Area provinces. Munawar said that for future expansion plans SSCG would seek partial financing from institutions instead of a term finance certificate, as the prevailing mark-up rate is very attractive.