KARACHI, Pakistan — Sui Southern Gas Company Ltd. (SSGC) said it cut unaccounted-for gas (UFG) losses to 10.59 percent in FY24 and returned to profit after a loss a year earlier, according to audited financial statements filed with the Pakistan Stock Exchange, May 13, 2025.
The improvement follows a stepped-up effort to replace aging distribution pipelines, tighten system controls and expand anti-theft enforcement — moves aimed at reducing “lost gas” that shrinks billable volumes and can be disallowed by regulators.
SSGC cuts UFG to 10.59 percent
In its latest corporate briefing, SSGC reported UFG of 10.59 percent in FY24 (32.2 billion cubic feet), down from 16.56 percent in FY23. UFG is the gap between gas purchased and gas billed, typically driven by leakages, meter tampering, theft, and metering or pressure-related issues.
On the bottom line, SSGC reported an unconsolidated profit after tax of 6.84 billion Pakistani rupees for the year ended June 30, 2024, reversing a 3.69 billion-rupee loss in FY23. The corporate briefing put consolidated profit after tax at 8.29 billion rupees for FY24, but also showed UFG rising to 12.07 percent in FY25 as indigenous supply depleted and overall throughput fell.
SSGC’s 1,500-kilometer network overhaul
The company’s operational data shows 1,500 kilometers of distribution network rehabilitation completed in FY23-24, up from 742 kilometers in FY22-23 — a step change from an earlier pace of about 200 kilometers a year over the prior decade. The higher pace is designed to replace leak-prone segments, stabilize pressure, and reduce opportunities for theft and meter bypasses in chronic loss pockets.
An AKD Securities summary of SSGC’s analyst briefing said management estimates every 1 billion cubic feet reduction in UFG can translate into roughly 3 billion rupees in savings, underscoring why SSGC has treated rehabilitation as both an engineering and earnings lever.
Background: a multi-year effort
The FY24 numbers reflect a strategy that has been building for years. In a February 2024 Business Recorder report, SSGC management outlined plans to lift rehabilitation capacity to about 1,500 kilometers per year as it targeted chronic loss areas. In a December 2024 report, The News said the utility was working through a 2,500-kilometer rehabilitation effort across Karachi neighborhoods to replace old pipelines, tackle leakages and ease low-pressure complaints.
What still stands in the way
Even after FY24’s decline, SSGC’s UFG remains above the levels regulators typically view as efficient for a modern network. A December 2025 rating report from PACRA cited an OGRA benchmark of 7.46 percent for UFG and said theft, leakages and system inefficiencies remain the company’s biggest operational challenge.
For SSGC, the next test is whether rehabilitation and controls can keep UFG trending down as the gas mix shifts toward higher-cost imported LNG — making every unit of gas lost to leaks or theft more expensive. The company has indicated it will keep expanding rehabilitation work in high-loss pockets, but sustained gains will also hinge on enforcement, metering accuracy and how regulators treat UFG claims in revenue determinations.
