Project Management

Organization Strategy and Project Selection

(Case Study Sui Southern Gas Company)

Sui Southern Gas Company The Vision

TO BE A MODEL UTILITY,

PROVIDING QUALITY SERVICE

BY MAINTAINING A HIGH

LEVEL OF ETHICAL AND

PROFESSIONAL STANDARDS AND THROUGH THE OPTIMUM USE OF RESOURCES

Sui Southern Gas Company Mission Statement

TO MEET THE ENERGY REQUIREMENTS OF

CUSTOMERS THROUGH
RELIABLE, ENVIRONMENT FRIENDLY AND SUSTAINABLE SUPPLY OF NATURAL GAS,

WHILE CONDUCTING
COMPANY BUSINESS PROFESSIONALLY, EFFICIENTLY, ETHICALLY

AND WITH RESPONSIBILITY

TO ALL OUR STAKEHOLDERS, COMMUNITY AND THE NATION

Sui Southern Gas Company Energy Supply / Demand

220 200 180 160 140

MTOE

120 100 80 60 40 20 0 2005 2010 2015 2020 2025 2030

Indigenous Supplies

Demand

Imported Oil

Total Indg.

Sui Southern Gas Company Gas Coverage Strategy

210 180 150

MTOE
Pipeline-III 2024

Demand
Pipeline-II 2018

120 90 60 30 0 2005
Demand
LNG-I 2010/11 LNG-II 2012/13

Pipeline-I 2014

Indigenous Supply

2010
Supply Gap PIPELINE-III

2015
PIPELINE-II

2020
PIPELINE-I LNG-II

2025
LNG-I Imported Oil

2030
Supply

Sui Southern Gas Company Gas Coverage Strategy

GAS IMPORT OPTIONS FOR THE COUNTRY

TRANSNATIONAL PIPELINES (IPI / TAP / QP)

IRAN-PAKISTAN-INDIA PIPELINE-2014 TURKMENISTAN-AFGHANISTAN-PAKISTAN PIPELINE-2018 QATAR-PAKISTAN PIPELINE-2024

LIQUEFIED NATURAL GAS (LNG)

FAST TRACK 2008 LNG-I (PAKISTAN MASHAL LNG PROJECT) LNG-II 2010/11 2012/13

Sui Southern Gas Company LNG Project

IMPORT OF LNG INTO PAKISTAN - LNG SUPPLY CHAIN
PROJECT DEVELOPER SSGC

GAS PRODUCER

GAS LIQUIFICATION (LNG PRODUCER)

SHIPPING

UNLOADING / STORAGE

REGASIFICATION

SUPPLY OF RLNG

PROJECT SCOPE (INTEGRATED STRUCTURE)

Storage & Berth

Sui Southern Gas Company LNG Project

Pakistans Gas Demand and Supply Projections indicate a widening gap of approximately 500 MMCFD by the year 2010. The gap starts to emerge in 2007-08 and builds up to 2100 MMCFD by 2015, as the current gas fields gradually go off plateau. Any commitments of additional gas supplies to industries, power or fertilizer plants on a long term basis are therefore not possible, without confirmation of additional sources of gas supply. This may be possible through an import gas pipeline which at the earliest could come on-stream by 2015 as per Gap Coverage Strategy or alternately a major on-shore / off-shore gas field discovery in the current year (the gas to market period being 5 years). A third alternate is the LNG import option which by current assessment will be able to provide gas by the year 2010/11. To this end GOP has nominated SSGC as the project facilitator for the establishment of 3.5 million tons per annum (mtpa) (equivalent to 500 MMCFD of gas) LNG import project with a re-gasification facility to be located in the vicinity of Karachi. It is estimated that the gas would be available through LNG import in the year 2010/11.

To date, SSGC and its Consultant have completed a pre-feasibility study (the Concept Report) covering business, technical, commercial, legal and other issues concerning LNG import, and have also provided input on Pakistans LNG Policy (including an LNG Policy Workshop). SSGC and its Consultant have conducted prequalification of interested Project Developers, and have issued formal Request for Proposals. It is expected that the first LNG parcel will be received and regasified in 2010/11. A project brief is provided below:

Sui Southern Gas Company GIREP

After substantial completion of expansion program under GIREP-I, SSGC has embarked upon the execution of Gas Infrastructure and Rehabilitation Expansion Programme-II as apart of its five year core investment programme to provide the requisite infrastructural capability and reliability commensurate with the anticipated expansion needs of its franchise area through effective utilization of the indigenous gas resources including Sawan/Miano and additional gas from Bhit and ZamZama and the expected availability from fields located in the blocks of Zarghun , Khipro and Sanjhoro. In the 5 years from 2004-05 SSGC is going to spend estimated Rs 12 billion on GIREP-II & QPCEP-III with the normal expansion of gas transmission and distribution system involving the extension of transmission & distribution network by around 700 Kilometers excluding the project still at conceptual stage. With the above mentioned expenditure SSGC will be able to transmit about 365 MMscfd additional gas and the total transmission capacity is expected to enhance to 1650 MMscfd gas in 2008-09.

Sui Southern Gas Company SCADA

In today's economic environment, SCADA requirements in the petroleum, Oil & Gas industries are changing at a rapid pace. Clearly, the need for reliable, centralized control and monitoring is more important than ever. The drive to reduce costs, increase system reliability and improve throughput demands effective centralized control. There is also a renewed interest in operational security. Ten years ago SSGC embarked on a major mission to use technology as a strategic assets and embarked on the use of open-architecture, distributed-intelligence and platform independent SCADA systems. In the first phase of this effort this effort the Transmission network of SSGC saw the use of Modbus protocol based PLCs running AGA-3/7 analysis for both flow and compressor performance monitoring. Block valve control was implemented shortly thereafter. LAN based redundant Host systems at Karachi and Shikarpur provided both online and historical data.In the second phase SSGC is now undertaking a distribution SCADA systems that will provide for custody Transfer, Load Forecasting, Gas Analysis and other Gas Management functions. In the execution of the Distribution SCADA system the Transmission and Distribution SCADA systems will be integrated. This will facilitate a seamless exchange of data between the different parts of SSGC resulting in streamlined reporting and higher efficiency. A state of the art Telecommunication System interconnects the various source, compressor, metering and administrative sites of SSGC. The system is designed for 99.99% reliability and provides voice, data, and video connectivity.

Sui Southern Gas Company GIS

To meet the challenges of continuous expansion of gas pipeline network, there was a dire need of such information system which could help SSGC for better planning, development, management, analysis, maintenance and operation of existing and forthcoming pipeline network. Before GIS, most of the companys assets information was scattered and was on paper maps developed with traditional techniques, without any automated system. No centralized data management system for development, storage and restoration of the maps was existed. Maps were stored at Karachi, Hyderabad and Quetta regional stations. Most of them were outdated and with variable scales, several geometrical problems and disconnected information. GIS has the ability to maintain and integrates geographic data from many sources. SSGC started development of GIS from scratch in the year 2005, using in-house resources in terms of hardware, software, maps and human resource. The vision of the project is to create and maintain an efficient GIS environment that fosters geographic data sharing within commercial, transmission, distribution, engineering, management and other departments of SSGC.