Gas suppliers in Pakistan launch tender for consulting support

02 May 2018 Authored by Consultancy.asia

Sui Northern Gas Pipelines, and Sui Southern Gas Company – the two public sector entities that control the distribution of gas in Pakistan – have turned to the consulting industry for support with a major structural reformation project. The project involves the segregation of distribution systems by province, and the establishment of a single umbrella body for coordination.

Pakistan’s four provinces, namely Balochistan, Khyber Pakhtunkhwa, Punjab and Sindh are currently supplied gas by two primary public sector units. The northern areas, which include parts of Baluchistan and Peshawar in Khyber Pakhtunkhwa, are fed by Sui Northern Gas Pipelines (SNGP), which covers a total area of nearly 7,800 kilometres.

The Southern regions, specifically other parts of Balochistan and Sindh, are supplied by the Sui Southern Gas Company (SSGC), which covers a total area of over 3,600 kilometres, spanning 1,200 towns, and amounting to nearly 400,000 million cubic feet of gas. The supply is utilised for both commercial and domestic purposes.

Now, the two entities are looking to simplify this distribution process by restructuring the transmission system. Specifically, the entities wish to establish individual distribution systems for the four provinces, while also establishing an overarching company to manage the transmission for the entire country’s gas supply.Gas suppliers in Pakistan launch tender for consulting supportTo this end, SNGP and SSGC have turned to the consulting industry for the development of detailed plans for the restructuring efforts. The entities have launched a tender, which enumerates the responsibilities that the selected consulting firm will have to manage, and have invited Expressions of Interest (EOIs) from firms that align with the same.

Tasks include the preparation of an ‘Implementation Strategy and Roadmap,’ wherein the firm will offer an overview of the minimum level of transformation that will be required in the system’s organisation and personnel management. Once this is complete, the firm is expected to oversee the legal and financial aspects of the restructuring process itself.

According to the tender, the firm will also be called upon to provide technical expertise during the project-implementation phase. In light of these requirements, the two companies expect that the applicant firm will have a minimum level of experience in the due diligence, HR, legal, financial, and regulatory domains, preferably within the gas or energy sector.

In essence, the selected ‘Transaction Advisory’ firm is responsible for every stage of the implementation process, complete with a list of criteria for project-evaluation at a later stage. Firms will be selected irrespective of whether they are domestic or international in their operations, although the regulatory and taxation requirements might change accordingly.

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