Progas LPG Terminal was acquired by SSGC LPG (Pvt) Ltd, a 100 percent-owned subsidiary of Sui Southern Gas Company Limited (SSGC) in October 2011 for Rs 2.25 billion against a much higher market valuation. The replacement value of the asset exceeds Rs 10 billion today. SSGC has capitalised on this opportunity at a very attractive valuation which will not only help diversify its product/revenue base, but also provide alternative fuel to the economy which it desperately needs.
The terminal was made operational in January 2012 and since then has handled nearly 25,000 metric tons of LPG imports; the last vessel with 3,800 MT of LPG was handled last week and two more vessels are expected this week to cater to the LPG shortage due to temporary closure of JJVL plant. Moreover, SSGC LPG issued a Request for Quotation (RFQ) for import of 3,000 MT of LPG import in first half of January 2013. The terminal is being maintained properly and recently dredging work was completed to handle bigger vessels. Plans have been finalised to double the storage capacity and increase distribution capability in 2013.
SLL vision is to increase the contribution of LPG in the energy mix to five percent from a meagre one percent presently. Its main role is to be the bulk supplier of LPG to the industry and to stimulate demand it has launched new downstream products like Autogas, Synthetic Natural Gas and conversion of diesel engines to LPG, in addition to the traditional cylinder sales and bulk trading business. Feasibility of LNG imports through LPG Terminal is also being explored.
The sale of Progas assets was done under a consent decree issued by the Sindh High Court in favour of the lenders and majority of the funds were distributed by the Nazir appointed by the Sindh High Court among the creditors, mainly banks. It must also be mentioned here that Abbas Bilgrami lives in Karachi and actively runs his energy consultancy business while Omar Saboor lives in Islamabad. We hope the above clarifies all misconceptions about the SSGC LPG Terminal. The PEW PR clearly shows that Dr Mughal is either pursuing his own vested agenda to distract the public from facts or genuinely not in touch with reality.
(The Writer Is DEPUTY GENERAL MANAGER CORPORATE COMMUNICATIONS)