Petroleum Division Seeks Third-Time Extension in Tenure of SSGC Board

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Petroleum Division has asked Sui Southern Gas Company (SSGCL) to approach the Securities Exchange Commission of Pakistan (SECP) to seek consent for a third time extension in the tenure of the company board.

The government has already given an extension to the board two times.

Now, it is seeking the consent of SECP for a third time extension in the tenure of the SSGC board.

The Petroleum Division had written a letter to SSGC saying that the nominations on the Board of Directors (BoDs) of SSGCL, on behalf of the Federal Government, are still under the finalization process owing to fulfillment of lengthy legal/codal formalities including approval from the Federal Cabinet and the same process requires more time
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Foregoing in view, elections for the Board of Directors of SSGCL may further be delayed for another period of (180) days enabling the Federal Government to complete all the requisite legal formalities for the upcoming election of BoDs of SSGCL including the finalization of nominations of Directors on the BoDs of SSGCL, Petroleum division said.

SSGC board expired on October 28, 2022. The ministry has not appointed new directors after five months.

However, the ministry requested a three-month board term extension from the Securities and Exchange Commission of Pakistan (SECP), which was approved as a one-time exception under SECP rules.

The Ministry of Energy (Petroleum Division) requested another 90 days from the SECP after failing to name new directors by January 26, 2023.

Another extension was granted which expired on April 26, 2023.

Now, the ministry had asked SSGC to approach SECP for another extension.

The company, formerly the best public utility in the region, is now unable to deliver uninterrupted gas supply to its consumers and has been losing money due to unaccounted-for gas (UFG)—gas theft and leaks—for three years.

SSGC stakeholders want the coalition government to take the proper steps and appoint professionally competent directors to lead the firm out of the quagmire.