Roohi Raees Khan, a business graduate from the Institute of Business Administration (IBA) in Karachi, has assumed the role of Chairperson of SNGPL’s Board of Directors. With almost 30 years of experience in senior-level positions across various sectors, including development banking, she brings valuable expertise in dealing with industrial setups. Her leadership skills and ability to overcome challenges have made a significant impact on SNGPL’s operations. She attributes the company’s success to the teamwork of her fellow board colleagues and the skilled, experienced, and qualified human resources within SNGPL.
Question: When you took charge as Chairperson of SNGPL’s Board of Directors, what were the targets set by the Board, and how much progress has been made in achieving them?
RRK: Since the start of our tenure in 2020, the Board has played a crucial leadership role. Our primary focus has been on addressing the issue of unaccounted-for gas (UFG) losses, which directly impact the company’s profitability. We recognized that reducing UFG was imperative for the company’s success.
Additionally, we emphasized digitization, cost control, and strengthening audit and controls through improved systems and procedures. These measures aimed to enhance operational efficiency, transparency, and good governance, ultimately contributing to the company’s bottom line. Our goal was to ensure that SNGPL operates sustainably and dynamically as an energy company. To achieve this, we set two main directions for the management. Firstly, we wanted to develop a long-term strategy to address emerging challenges, such as natural gas shortages and competition in the sector. Secondly, we focused on enhancing operational efficiency and addressing issues related to UFG and gas marketing.
The Board’s persistent guidance and vigilance resulted in a historic reduction of 15 billion cubic feet (BCF) in UFG during the fiscal year 2020-2021, leading to record profits. We also formed a Board subcommittee to rationalize operational expenditures, which resulted in savings of approximately Rs. 2 billion. Moreover, we strengthened the internal audit function and improved the company’s business systems, enhancing efficiency and transparency. These measures were implemented to make SNGPL a progressive organization in the long run.
Question: SNGPL has shown significant improvement in reducing UFG, which has been a persistent challenge in the gas sector. How was this achievement made possible?
RRK: Reducing UFG has always been a top priority for the federal government, and our Board accepted the challenge. High UFG levels had adversely affected the company’s profitability for many years. Our goal was to achieve single-digit UFG levels. From July 2020 to December 2020, we reduced UFG from 12.32% to 7.56%.
Reducing UFG would not have been possible without the essential support of relevant stakeholders. We obtained unwavering support from the Petroleum Division to effectively address this issue. In Khyber Pakhtunkhwa, Karak was a significant area with high UFG levels, which posed a considerable challenge between 2016 and 2019. To gain support from the provincial administration, the Board and management held meetings with key officials in KPK in 2020. We also conducted the first-ever Board meeting in KPK’s history in November 2020, which played a vital role in gaining local support for UFG control. Personally, I visited the troubled areas of Karak, which had the highest contribution to UFG, to motivate SNGPL officials to sustain and further reduce UFG. The exceptional performance by the SNGPL team in Karak has been recognized and rewarded in May 2023, inspiring and encouraging managers in other high UFG areas.
Through a comprehensive strategy and intensive sessions of the UFG Committee, we surpassed the UFG reduction target set by the federal government for the period from 2019 to 2022. We continue to focus on initiatives like TBS metering, which will further control UFG. Our three-year UFG Sustainability Strategy, developed on the Board’s directions, aims to ensure consistent UFG control in the future.
Question: In a highly competitive environment, how does the Board envision the future of SNGPL?
RRK: The Board has placed great emphasis on developing a dynamic strategy document that outlines the company’s viable future direction. This strategy document, recently completed and approved by the Board, focuses on addressing challenges in both “business as usual” and diversification. We aim to translate ideas into specific viable businesses while leveraging SNGPL’s key strengths. Our strategy aims to mitigate challenges in an ever-changing energy sector and the introduction of competition through market liberalization.
Question: Will SNGPL embrace technology to improve its business processes and efficiencies?
RRK: The Board has prioritized the digitization of business processes to enhance transparency and overall efficiency within the organization. We rolled out a comprehensive digitization plan in 2020, which led to the formation of an IT and digitization committee. Working alongside a qualified and experienced IT department, we have achieved significant milestones. For instance, we integrated the SCADA system with our industrial consumers, resulting in reduced gas theft incidents and gas savings/recovery worth nearly Rs. 5 billion.
As a successful pilot project, we introduced IoT-based Pressure Transducers at various locations to provide real-time pressure-related data. Additionally, we have installed electronically-encrypted cyber locks on major industrial consumers and plan to introduce them for all other industrial consumers. Various technological interventions, such as installing trackers in company vehicles and implementing a biometric system for field camps, have led to significant savings and improved governance.
Question: Complaints have been raised about the lack of digitization in SNGPL’s distribution network, particularly for domestic consumers. How do you plan to address these chronic issues?
RRK: We are using GIS integration to monitor customer complaints, gas theft, and leakages. The ongoing digitization process aims to bring transparency and visibility to our operations. Notably, GIS integration for pipelines up to 4 inches has been completed, enabling efficient detection of leakages and line losses. We plan to complete GIS integration for 2-inch and 1-inch pipelines, along with total geo-tagging of the pipeline network by 2024/2025. This will substantially enhance transparency within the system, gradually replacing the paper-based system.
Question: The federal government promotes a paperless work culture in the government sector. What measures has SNGPL taken in this regard?
RRK: In line with the federal government’s goals, we are actively pursuing the adoption of a digital document management system. This initiative aims to reduce, if not eliminate, the need for paper-based file movement, leading to significant cost savings.
Question: Can customers expect to benefit from SNGPL’s digitized operations?
RRK: Absolutely. Customer service is a top priority for SNGPL. We have introduced a comprehensive mobile application called ‘SNGPL Connect On’ that provides multiple services at customers’ fingertips. With a single tap, customers can lodge complaints, check billing history, apply for new connections, file service issues, and order LPG cylinders using their smartphones. Additionally, we have entered into agreements with financial institutions to enable customers to pay bills online.
Question: What measures have you taken as Chairperson to empower women and ensure their equal participation within SNGPL?
RRK: The Board has actively encouraged gender equality within SNGPL. We conducted awareness sessions on harassment of women for the first time in over 50 years, aiming to educate both men and women at all levels. Additionally, I recently inaugurated a daycare center, fulfilling a long-standing demand of our female employees. This initiative has provided them with workplace satisfaction and peace, enabling them to play effective roles as working mothers. I have always encouraged women at SNGPL to voice their opinions and concerns.
Gender equality is essential, as highlighted by the Sustainable Development Goals (SDGs). While Pakistan’s corporate and business sectors have gradually recognized the importance of women’s participation, there is still progress to be made. Cultural changes are necessary to foster an environment where men and women can work as equal partners and respect each other’s roles in organizations and society.
