Performance / Activities of the Company

Sui Northern Gas Pipelines Limited

 Something about Pakistan
• The Strategic
Importance
• Can act as energy
corridor for region
• Fast growing Oil & Gas
Demand in the country
• Historical Success
Ratio of Oil & Gas
exploration 1:3.4
• New Incentives for E&P
in Petroleum Policy.
• Huge Coal Reserves
 About Pakistan

Pakistan’s Energy Mix (2011-12)

HYDRO ELECTRICITY, IMPORTED &
10.5% NUCLEAR
ELECTRICITY, 2% OIL, 30.8%
COAL, 6.6%

LPG, 0.5%

NATURAL GAS, 49.5% Source: Pakistan Energy Yearbook 2012

Sui Northern Gas Pipelines Limited 3
About Pakistan

Natural Gas Infrastructure

4
SNGPL, The Company;

Incorporated in 1963

Converted to Public Limited in 1964

Authorized Capital is Rs. 15 Billion

50.5 % of Energy Requirements

Provided by Natural Gas

13 Region Offices

Yearly Gas Sales of about 675 BCF

5
 VISION

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. 6
 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.

7
 CORE VALUES

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.

RESPONSIBILITY
We are responsible as individuals and as teams - for our work and
our actions. We welcome scrutiny, and we hold ourselves
accountable.

COMPETENCE
We are competent and strive to continuously develop and improve our skills
and business practices.

INTEGRITY
We have integrity - as individuals and as teams - our decisions are
characterized by honesty and fairness.
8
SNGPL, The Company

SHAREHOLDING PATTERN
AS ON DECEMBER 31, 2012

Particular Number of Shares Percentage

The President Islamic Republic of Pakistan 182,664,737 31.68

SNGPL Employees Empowerment Trust 24,908,827 4.32

Government controlled institutions 149,887,928 26.00

Government Holding 357,461,492 62.00

MCB Bank Limited 50,158,879 8.70

Others and General Public 168,940,234 29.30

Private Holding 219,099,113 38.00

Total 576,560,605 100.00

Sui Northern Gas Pipelines Limited 9

 CORPORATE STRUCTURE

SHARE HOLDERS

BOARD OF
DIRECTORS

MANAGING DIRECTOR

HUMAN
FINANCE AUDIT UFG CONTROL
RESOURCE
COMMITTEE COMMITTEE COMMITTEE
COMMITTEE
SNGPL, The Company

Certifications

11
SNGPL, The Company

Memberships

12
SNGPL, The Company

Human Resources
More than
Career Terms = 9212
10000
Temporary Engagements = 1219
Employees

• Professional Engineers (600)

785 • Chartered Accountants (49)
Professionals • IT Professionals (120)
• HR Professionals (16)

• Qualified & Experienced

Welders
• Fabricators
• Mechanics
Skilled • Electrician
Workforce • Riggers
• Telecommunication & SCADA
Technicians
•Commerce & Finance
Assistants 13
 SNGPL, The Company

Our Network

Distribution
Transmission •> 93,000 Km
•2620 Towns &
•7,653 Km
Villages
Compression
•216,000HP
•11 Compressor
Stations
Gas Sources
•36 Gas Sources

Sui Northern Gas Pipelines Limited 14

 Mingora
Batkhela

SNGPL’s Transmission Tangi

Sakhakot
Shergarh
Takht Bai
Dargai

Mardan Sawabi
Topi
Mansehra

Network
Charsadda
Khazana
Dolatpura
Sugar 12"
16" Abbottabad
Peshawar Nowshera
Murree
Havelian
Attock
Wah Jammu & Kashmir
Taxila (Disputed Territory)
16"
16" Islamabad
CC-3
24" Sadqal
Rawalpindi

Afghanistan NWFP Kohat

Galli Jagir
Dhurnal
12" GUJARKHAN

Adhi Mirpur
Dakni
Lachi 24" Dhulian 30" Fimkassar
Joyamair
Chak Naurang Jhellum
Khaur
Meta Meyal
Karsal 24"
Chanda Gharibwal
Toot 30"
Choa Saiden Sialkot
Balkassar
Makori/Shakardara
Manjowal FC-1 16" 16" CC-1 Lala Musa
Bannu Jalalpur Jattan
Gurguri Daudkhel
Pezu JAUHARABAD Bhera
Gujrat
Tank KHUSHAB Wazirabad
12" Dhaunkel
Sargodha
Ladewala 16"
D.I. Khan Wariach Pasroor
Rahwali

30" BC-1
Hafizabad Gujranwala
16"
Lalian Kala Shah Kaku
Shahkot
Khurrianwala Shahdara

AC-8 24"
Jaranwala

Proposed Pipelines (Project IX) Jhang Faisalabad Lahore

Sarshmir Packages
AC-7 T.T.Singh Gojra
Akhtarabad Kasur
24" 24"
Existing Pipelines
Dhodak Okara

BALOCHISTAN 24"
Chunian

Basirpur
Purification Bank NC-1
Depalpur
16" 30" Sahiwal
Salsabil
Kot Addu Walla Adda
DG KHAN Taunsa Barrage
Power Plant X-ing 30" Makhdumpur CHICHAWATNI
KOT ADDU Paharan
Mian Channu
Qadirpur Rawan
Gas Field 24" 24" 36"
Multan
Muzaffargarh Machiwal
Potohar Fields AC6
Jehanianl
Chishtian
Condensate Field
PUNJAB
Hasilpur

Town on Gas Pirkoh

Loti
Towns where gas is being Bahawalpur
provided / commissioned Samasata
AC-0 AC1X -SUI
Provincial Boundaries
AC-4

Compression Facility
Zahirpir
Dera Nawab/ Ahmed
pur East
Total SNGPL's Transmission
Sui

Chachar Sadiqabad
Rahimyar Khan
Khanpur
Network (8 ‘ to 36”)
Kandhkot

Qadirpur
7653 KMs
Hassan Badar AC1X-Qpr

Zamzama Ghotki Mari

Rehmat
Khairpur
SINDH
Sawan

15
Kadanwari
 SNGPL, The Company

Consumer Base
> 4.40 Million Consumers
Domestic
Gas sale 640 BCF /year
Sale Revenue Rs. 236 Billion
Commercial

Gen. Ind.
Industrial & 18.93%
Domestic
Captive Power 26.12%

Fertilizer Commercial Power

4.52% 20.13%

Captive Power
Cement 8.43%
Fertilizer CNG
7.28% 14.48%

Power
Cement
0.1%
CNG

Sui Northern Gas Pipelines Limited 16

SNGPL, The Company

Growth

1964 2013

• 47
Gas sales Gas sales • 1750MMCFD
MMCFD

Towns & Towns &

Villages
Served
• 02 Nos Villages
Served
• 2,620 Nos

Consumers • 67 Nos Consumers • 4.40 Million

17
SNGPL, The Company

DOMESTIC CONSUMERS GROWTH

4,360,723
4500000 4,111,808
3,867,359
4000000 3,611,187
3,358,439
3500000 3,101,303
2,869,208
3000000 2,437,541
2,641,273

2,263,875
2500000 2,038,403
2,133,162

2000000
1500000
1000000
500000
0

*Figures of 2012-13 are tentative

Sui Northern Gas Pipelines Limited 18
Sui Northern Gas Pipelines Limited

Capabilities

19
SNGPL, The Company

SERVICES
• Pipeline Networks (Steel &
Polyethylene)
• Compressor Stations
Engineering,
• Gas Purification &
Procurement, Dehydration Plant
• Cathodic Protection
Construction Systems
• Fiber Optic Cables
&
• Gas Measurement Facilities
Commissioning • Gathering Mains &
Wellhead Surface Facilities
(EPCC) • Telecommunication &
SCADA
• GIS

20
SNGPL, The Company

SERVICES Conti…

• Conceptual Studies
• Pipeline Hydraulics & System
Design
• FEED Documents
Pipeline • Basic Engineering
• Reconnaissance Survey
Engineering • Geodetic Survey
• Geophysical Surveys
• Detailed Engineering Design
• CAD Services

21
SNGPL, The Company

SERVICES Conti...

Three layer
• Line Pipe Coating from
polyethylene 4” – 42” Dia
coating
Pipeline
Integrity
Management

Health, Safety &

Environment

22
SNGPL, The Company

SERVICES Conti...

Gas Turbine Overhauling &

Refurbishing

Operation & Maintenance of Gas

Transmission & Distribution
Networks

Human Resource Development &

Technical Training

23
 SNGPL, The Company

Codes & Standards

Gas
Welding of
Transmission
Line Pipe Valves & Pipelines & Gas
& Coating
Specifications Fittings Related Measurement
Distribution
Facilities
Piping

DIN 30672
(Joint API
Coating) Specification
6D
ASME API API 1104
DIN 30670 AGA
B 31.8 Specification ASME IX
(3 LPE) 3,5,7,8
B 31.3 5LX AWS

ANSI 16.9
NFA MSS SP 75
49 - 710

24
SNGPL, The Company

Codes & Standards Conti…

Pipeline Fiber Optic SCADA

Corrosion Thermoplastic
Integrity Installation & Communication
Control Pipeline Laying
Management Termination & Security

NACE
RP – 01692 AGA - 12
RP - 0177
ASTM
B31.8S NECA 301
D2513

RTU -
ASTM G57
MODBUS

25
SNGPL, The Company

Construction Equipment
Coating Plant • 01 Excavators • 40

Dozers • 11 Air Compressors • 81

Thrust Boring Machines • 07

Pipe layers • 44
Trenching Machines • 07
Cranes • 20
Prime Movers • 33
Pay welders • 04
Semi Trailors • 33
Welding Plants • 543
Self loader trucks • 20
Vehicles • 541
Trucks • 35
Sand Blasting Units
with Compressors • 12 Generators • 14
Pipe Bending
Machines • 04 Drilling Machines • 85
Stoppling Machines Polyethylene Toolkits
(4”, 6”, 8”) • 14 with Generation • 90

26
SNGPL, The Company

Achievements (1964 -2012)

High Pressure 3 Layer Gas

Compressor Distribution
Transmission Polyethylene Measurement
Stations Mains
Lines Coating Stations
216,000
4– 42” Dia 1 – 300
HP 6 – 36” Dia 1 – 24” Dia
Pipes Coated MMCFD
Installed
67 373 SMS
Compressors > 10 Million
7,653 Km > 88,000 Km (City Gate
11 Compressor Sq. Meter
Stations Stations)

27
 SNGPL, The Company

PROJECTS COMPLETED

Project Year
Capacity
Enhanced
708 Km
Pipelines of
Cost

I (1964 – 1969) from 90 to 170 Rs.6 Billion

MMCFD 6 – 16” Dia

Project Year
Capacity
Enhanced
156 Km
Pipelines of
Cost

II (1970 – 1971) from 170 – 205 Rs. 2 Billion

MMCFD 12 – 18” Dia

Project Year
Capacity
Enhanced
724 Km
Pipelines of
Cost

III (1971 – 1973) from 205 – 277 Rs. 8.4 Billion

MMCFD 8 – 16” Dia

Sui Northern Gas Pipelines Limited 28

Projects Completed Conti…

Project Year
Capacity
Enhanced from
357 Km
Pipelines of
Cost
277 – 387
IV (1974 – 1981 )
MMCFD 8 – 16” Dia
US$ 135 Million

Project Year
Capacity
Enhanced from
787 Km
Pipelines of
Cost
387 – 450
V (1985 – 1991)
MMCFD 8 – 24” Dia
US$ 176 Million

Project Year
Capacity
Enhanced from
1350 Km
Pipelines of
Cost
US$ 560
450 – 980
VI (1989 – 1998)
MMCFD 16 – 30” Dia Million

29
Projects Completed Conti…

Project Year
Capacity
Enhanced from
580 Km
Pipelines of
Cost
980 – 1380
VII (2001 – 2003 )
MMCFD 16 – 36” Dia
US$ 207 Million

Project Year
Capacity
Enhanced from
803 Km
Pipelines of
Cost
980 – 1680
V III (2003 - 2005)
MMCFD 8 – 24” Dia
US$ 160 Million

Project Year
Capacity
Enhanced from
575 Km
Pipelines of
Cost
1680 – 2124
IX (2007 – 2009)
MMCFD 12 – 36” Dia
US$ 210 Million

30
Projects Completed for clients
Pak Saudi Fertilizer • 16” x 15Km Fauji Kabirwala • 8 " x 6 Km
Power Co. Ltd.
Pak Arab Refinery
• 16” x 493Km
Company
Pak Arab
Fauji Fertilizer • 16 " x 49 Km Refinery • 6 " x 23 Km
Corporation • 20 " x 9 Km Company

Pakistan State Oil • 16 " x 49 Km • 10 " x 78 Km

MOL, Pakistan • 10 " x 9 Km
• 8/12 & 18 " x 52 Km
GOP’s Quetta Gas
• 12 " x 169 Km
Pipeline
Pakistan • 8 " x 8 Km
Pakistan Ordnance Exploration Ltd.
• 8 " x 26 Km
Factories

Pakistan Oilfield
• 10 " x 25 Km Engro Fertilizer
Limited • 20 " x 27 Km
Plant
Pirkoh Gas
• 8-16 " x 20 Km
Company
Fatima (Gas + • 20-28 " x 58 Km
Pakistan Atomic • 8 " x 105 Km
Water line)
Energy Comm. • 8 " x 84 Km

31
 Sui Northern Gas Pipelines Limited

Financial Highlights

32
Financial Highlights
Gross Sales Revenue
Rupees in billion
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

37 42 52 74 97 123 137 140 184 198 215 268 263

300

250

200

150

100

50

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Financial Highlights
Profit after Tax
Rupees in million
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1,337 1,887 2,014 2,297 2,736 3,722 2,678 2,497 931 2,555 1,125 3,044
The results after incorporating adverse financial impact arising out of Lahore High Court,
Lahore’s decision against the Company would be: (2,634) (1,558)
(appeals in respect of which are pending before Supreme Court).

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Financial Highlights
Dividend Per Share
% per share
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

17 20 22 25 30 40 30 35 - 20 15 35

45

40

35

30

25

20

15

10

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Financial Highlights
Contribution To Exchequer
Rupees in million
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Income
993 877 1,193 1,367 1,526 1,397 1,571 1485 800 664 398 1,781 2,363
Tax

Sales Tax 5,429 6,303 6,911 9,250 12,362 15,210 14,835 16,418 22,997 24,938 31,103 36,610 40,964

GDS 2,443 4,048 3,190 70 1,333 2,046 9,515 750 8,219 - 3,566 - -

Gas
Equalizat
- - - 5,722 5,825 5,346 10,144 13,217 28,321 11,217 24,299 32,021 35,293
ion to
SSGC

11,29 16,40
Total 8,865 11,264
4 9
21,046 23,999 36,065 30,385 59,537 36,819 59,366 70,412 78,620

100,000
50,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
POTENTIAL OPPORTUNITIES
FOR
INTERNATIONAL INVESTORS
 PAKISTAN ….
Where Opportunities Never End
Salient features of our Liberal Investment
Policy
 A level playfield for all investors  No limit of minimum foreign equity

 All sectors open to investment  Freedom to repatriate dividends, profits etc.

Leading Investment Sectors

 Banking & Finance  Power  Information Technology

 Oil & Gas  Industry  Real Estate

 Telecom  Transport  Tourism

Investment Opportunities in Oil & Gas Sector
 EXPLORATION AND PRODUCTION
 NEW CONCESSION – ON SHORE
 NEW CONCESSION – OFF SHORE
 GAS IMPORT
 TRANSNATIONAL PIPELINES
 INFRASTRUCTURE PROJECTS
 OPERATION OF PIPELINES
 LNG IMPORT BUSINESS
 GAS STORAGE FACILITIES
 MANUFACTURING HIGH PRESSURE LINE PIPE
 ENERGY CONSERVATION
 WASTE HEAT RECOVERY
 ENERGY EFFICIENT GAS APPLIANCES
 ALTERNATE ENERGY
 COAL GASIFICATION
 BIO GAS PLANTS
 SOLAR THERMAL ENERGY
 WIND ENERGY
 LPG
 EXTRACTION PLANT
 MARKETING & STORAGE
 DEMAND / SUPPLY GAP IN NEXT TEN YEARS
(MMCFD)

Description 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Demand 3426 3532 3556 3629 3680 3717 3757 3801 3881 3926
Supply 1875 2286 2014 2147 2111 1939 1803 1696 1544 1414
GAP (1551) (1246) (1542) (1482) (1569) (1778) (1954) (2105) (2337) (2512)

(MMCFD)
4500

4000 (2512)
(1778)
(1551)
3500
GAP
3000
Volume MMCFD

2500
Demand
2000
Supply
1500

1000

500

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Year
Future Projects (Import Options)
 Iran – Pakistan (IP) line (GSA Signed)
 Turkmenistan-Afghanistan-Pakistan Line (Under Negotiation)

41
Future Projects (Import Options)
 Liquefied Natural Gas (LNG)

42
Thank You

43
 PROJECTED DEMAND / SUPPLY (October2013 to MARCH 2014)
(MMCFD)
(MMCFD)
2013 2014
Description OCT NOV DEC JAN FEB MAR
Avg. Input * (A) 1,726 1,738 1,738 1,688 1,683 1,683
Dedicated Supplies (Power)
PEPCO - Guddu 144 144 144 144 144 144
Engro Energy - Qadirpur 63 63 63 63 63 63
Liberty Power - Qadirpur 37 37 37 37 37 37
Sub total (B) 244 244 244 244 244 244

Pipeline Qality Supplies "C" = (A-B) 1,482 1,494 1,494 1,444 1,439 1,439

Losses 190 191 191 186 185 185

Company use 20 20 20 20 20 20
Sub total (D) 210 211 211 206 205 205

Gas Available for Sale "E"=(C-D) 1,272 1,283 1,283 1,238 1,234 1,234

44
 PROJECTED DEMAND / SUPPLY (October2013 to MARCH 2014)
(MMCFD)
(MMCFD)
2013 2014
Description OCT NOV DEC JAN FEB MAR
Gas Available for Sale 1,272 1,283 1,283 1,238 1,234 1,234
Demand (Punjab)

Domestic 288 363 551 718 608 409

Commercial 74 74 76 76 77 77
Strategic/Defense Industry 70 70 70 70 70 70
General Industry 358 358 358 358 358 358
Captive Power 205 205 205 205 205 205
CNG 299 300 300 301 301 302
Fertilizer 240 240 225 225 225 240
Power (Committed) 110 110 104 104 104 110

Power (Non committed) IPPs & KAPCO 207 207 207 207 207 207
Sub total (F) 1,851 1,927 2,096 2,264 2,155 1,978
Demand (KPK)
Domestic 124 155 236 307 260 175
Commercial 14 14 14 14 15 15
General Industry 27 27 27 27 27 27
Captive Power 18 18 18 18 18 18
CNG 77 78 78 79 79 80
Sub total (G) 260 292 373 445 399 315

Total Demand (B+D+F+G) 2,565 2,674 2,924 3,159 3,003 2,742

Shortfall ** (Volume to be curtailed) (839) (936) (1,186) (1,471) (1,320) (1,059)

45