Importance of utilities cannot be ignored worldwide in urban or commercial sectors. Natural gas is the most important source providing energy to commercial and domestic users. ASIA gas company Ltd (AGC) is the Pakistan's leading integrated energy utility company, which is powering the national economy by providing 360 BCF (Billon per cubic feet) of natural gas annually, at affordable prices to 1.98 million industrial, commercial and domestic customers. AGC transmission and distribution system is comprised over 3,000 km of high pressure pipeline and 27542 km distribution network. Gas meter manufacturing plant with an annual production capacity of avers 550,000 meters. AGC makes gas available to customer's at the most unimaginable at the most unimaginable places in the provinces of Sindh and Balochistan, while promoting conservation of the environment pursing best practices in corporate governance.
The core business of the company is the purchase of natural gas and distribution and selling. It is also engaged in manufacturing gas meters and import of LPG. AGC has a superior position in this industry in its assets turnover and sales but its declining since year 2004.
Get your grade
or your money back
using our Essay Writing Service!
The ASIA Gas Company (AGC) (Formerly Asia Gas Transmission Company Limited) was formed in 1954. The Company in its present shape was formed on March 30, 1989 following a series of mergers of three pioneering companies, namely Asia Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. ASIA Gas Company is Pakistan's leading integrated gas company. The company is engaged in the business of transmission and distribution of natural gas in southern part of Pakistan. ASIA Gas Company transmission system extends from Asia, Balochistan to Karachi, Sindh.
The company also owns and operates the only gas meter manufacturing plant in the country, under an agreement with Schlumberger Industries, France. The Company is listed on the Karachi, Lahore and Islamabad Stock Exchanges.
The Company is managed by an autonomous Board of Directors for policy guidelines and overall control. Presently, AGC's Board comprises 14 members. The Managing Director/Chief Executive is nominee of Government of Pakistan (GOP) and has been delegated with such powers by the Board of Directors as are necessary to effective conduct the business of the company
To meet the energy requirement of customer through reliable environment friendly and reliable environment and sustainable supply of natural gas while conducting company business professional, professional , efficiently, ethically and with responsibility of all our stake holders.
AGC strategic vision to use and become the most technology in Pakistan and achieve best and higher organizational effectiveness and greater business, with productivity and best performances implementing "lower cost and higher returns" which will result in "satisfied stakeholders".
Keep Company's Interest above self and acts in ethical manner. Promote ethical business environment. Take effective actions if observers unethical behavior or situation. Seen & known to be honest. Lives within means and intellectually honest.
Makes positive contribution towards the achievement of AGC's Vision. Strives for Continuous improvement. Respond effectively to customer needs. Takes timely & Quality decisions.
Building strong relationships across functions and to work well with all type of peoples and corporate with others. Sharing ideas is the best practice with others. Supports the achievements of Company and team goals. Contribute to team effectiveness by using people's different skills. constructive solutions should be made while maintaining positive working relationships and to demonstrate with sensitivity.
Responsibility of Stake Holders
Change in operating environment that impacts the business (i.e. markets, customers, suppliers, employees, competitors, technology, regulatory, political and public). Creating solutions to meet the customer needs and develop colleagues and members of teams to improve the skills and their performances. Ensure maximum utilization of resources. Balances short term and long term priorities of the organisation to give maximum results with compliance of law.
Transmission Network 3,062 (Km)
Distribution Network 27,542 (Km)
Compression Capacity 62,600 (HP)
DISTRICTS ON GAS
Sindh : 19
Balochistan : 10
TOWN/ VILLAGES CONNECTED
Industrial : 3,140
ORGANISATIONAL STRUCTURE OF (AGC)
Always on Time
Marked to Standard
Deputy Managing Director
Planning & Construction
ASIA Gas Company Ltd (AGC) is progressive and dynamic as it is managed by sound professionals in each field. Direct access of production, sales and financial data is available across all levels of management, any day and any time. AGC has clinched the higher position in industry undergoing different technology-oriented business which drives the company to success and is the backbone of growth. The revolution in IT world has changed AGC into world-class utility company.
AGC is running different extensive domestic and international training programs and have made Human resource as self sufficient unit, and AGC has made a benchmark by giving training to its staff workforce instead of hiring foreign people and this is a big change in utility sector. The professional development programs have given AGC a benchmark and reputation with the best HR technology in the market today. AGC also revamp Customer Relationship Management framework and Technology Enabled Cultural & Business Transformation by introducing a state-of-the-art, off the shelf, Business Applications; the Customer Information System (CIS), Enterprise Application (ERP), and Business Process Mapping (BPM).
INTERNAL AUDITING DEPARTMENT
Internal auditing department at (AGC) perform professional activity were involved in by helping organizations to achieve their stated objectives. And it will be utilizing a systematic methodology which can be help in for analyzing for the business processes, Goal of highlighting organizational problems to procedures and activities which will be help in recommending solutions. The internal auditing activity will be performed by the professionals internal auditors were employed to the organization to check the internal auditing. The internal auditing will be within the organization for the scope of the broad and which may involves in the topics such as reliability of the financial reporting, deterring and investigating fraud, compliance with the laws regulations and operation efficacy.
DOMESTIC & COMMERCIAL SERVICES
ASIA Gas Company Ltd (AGC) use to offer many services to the domestic & commercial customer.
Submission and Registration for new domestic and commercial connections.
Conversion from domestic to commercial connection.
Conversion from commercial to domestic connection.
Refund of connection charges where connection is not required.
Restoration of old disconnected connections.
Additional/ Alteration and enhancement of gas load of existing domestic and low pressure commercial customer.
ASIA Gas Company always to promote industrial activities in the country. And they present many services to Industrial costumers.
Intermediate gas pipe line (IMPL), The pipelines will be normally lay for departments and housing schemes on customer's cost, the multistoried buildings where the main extension will not be possible. These buildings are constructed in the shape were the numbers of residential units and independent blocks.
Main extensions for residential and commercial customers, these mains are constructed from the outlet to the prospective consumer premises like high street in the cities, villages and towns. The Normal pressure of gas is been maintained in order.
Acknowledgment and registration of industrial application for gas connection. There will be some new applications which will be receive them and treat like prospective applicants on AGC enquiry form for CNG Station, Industrial, Power Generation, change of tariff cases and new/extension/ alteration along with all the necessary documents as mentioned in therein.
Enhancement of load in those industries the people who will apply to their extension will be in load to submit properly if there is any enquiry in the given details for their additional gas burning equipments, working hours, gas load requirement and factory layout plans showing the proposed location of new gas burning equipment. There will be the Ownership and other valid documents which are already submitted by the customer in the agency and no one will be asking again for the resubmission of the applications.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
This department provides the company with financial analysis and investments. The company has a good relationship with the foreign and local banks.
Revenues and expenses of AGC shows that there is increase in sales steadily over the year amounted Rs 86.8 billion in year 2008 and increased to 1.30% compared the last year, net sales also increased due to decline in development surcharge by 95.29% but the cost of gas was Rs 69.2 billion as now increased by 9.63% and figures of net profit for nine months stands at Rs 319 million compared with last year profit same term was Rs 469 million.
The company liquidity position declining over the last years as we can see from the chart, and the fading profitability is largely a result in cost of gas.
HUMAN RESOURCE DEPARTMENT
AGC is an organization, which believes in:
Employee involvement and rewarding employees
Open book management.
Workers at AGC are free to make suggestions, express their disapprovals, and take an active part in management. If an idea is worthwhile it is taken into consideration and implemented in future irrespective of the level it came from. The ideas can range from dealing with the customers to top management.
AGC is widely known and acknowledge for the world-class engineering technology, structure, construction and design, operation and maintenance for the supply of gas in extensive quantity with a fully capable infrastructure and providing solutions to other companies in region.
Customer relationship is divided into following divisions.
BILL PAYMENT OPTIONS
To facilitate the customer AGC provide various bill payment options.
ARY Sahulat Center.
Customer Facilitation Centers.
ASIA Gas Company (AGC) has launched an SMS service that allows its customers to access billing information.
Social & Environmental Responsibilities
As a public utility, AGC is committed to the present and future well being to people and the environment in which we live. The commitment is to be pursued with a goal of continuous improvement and guided by the following principles:
Encourage and expect each employee to be environmental responsible and to conduct work practice in a safe manner.
Build health and safety facility and environment consideration into all phases of the business including products and technology discovery and development.
Encourage and promote waste minimization.
Actively participate with government agencies and other appropriate groups to insure that development and implementation of environmental, health and safety policies.
Train worker for safe work practice.
Implementation of GIS:
GIS project vision:
The project vision was to create and maintain an Efficient GIS environment for the sharing of geographical data with commercial, distribution, engineering management, transmission and other departments of AGC.
The rapid expansion of gas pipeline network demands an efficient GIS for an analytical decision support tool for the planning, management and development process.
AGC has always taken initiatives for the improvement of their business objectives and develop step by step towards its vision through the use of technology.
AGC launches GIS in 2 different phases for the gas distribution and transmission network.
MAJOR ENERGY CRISIS FEARED:
Now days Pakistan are facing a major energy disaster in the oil , natural gas and power in the next coming years that could block the economic growth is coming for many years . Partly contributed by gas shortfalls, the electricity and the power is getting shortage and there are expecting to be over than 5,250MW by 2010, there can be increase the oil by over 23% to about 21% million tons in 2010 which can be in demand and help to the country natural these can be helpful for the country and in future there can save in the plans were the energy is using in the right to reduce the disaster in the coming up future.
This would leave a deficit of about 9 million tons of diesel and heating system oil imports, and since day by day the gas is getting shortage were their expected ti be much higher than which is need to import from the reliance company and will be imported oil, thus increasing pull on foreign exchange situation.
In year 2009 oil import bill was about $6.5 billion compared with year in 2004-05 $3.5 billion, because of higher international oil prices, and its expected load to be even higher in future as a result of growing in the Middle East crisis day by day. According to the former minister of the government disclosed the planned five major initiatives to meet these energy requirements in the Gwadar port as their got energy plant and the LNG import the three major pipelines to import the gas by the gwadar plant, However, four of these initials including the three import pipeline projects, show that there is no signs of the progress for their range of reasons while focus on energy facilities in Gwadar were it will be mainly depend on the security situation, besides oil and gas import pipelines.
Gas demand has increased and as a result shortfall of gas can be seen in different parts of the country so the new management of the company is looking to increase the tariff of gas to control the miss use by the consumers. AGC proposed an increased in tariff by 18 percent from the government to overcome their losses, and the consultation with the stakeholders is going for the decision as a result in discontentment in business and public community.
Pakistan's dependence on gas is significantly higher as compared to other available energy resources as it accounts for almost 50% of total energy supplies. Relying mostly on oil & gas, these two sources of fuels collectively constitute almost 78% of the total energy demand of the country. Though indigenously available gas is sufficient to cater to domestic demand; major portion of oil demand is met through imports. Therefore, natural gas consumption in Pakistan is more a function of supply than demand. Hence, any increased supply through new gas discoveries can be easily distributed and sold, by gas distributing companies (GDC's) due to the strong demand.
Industries are in great losses and closing down their operation and production due to the high cost they are facing in production because of high utility tariffs and massive unemployment and revenue decline is visible.
Issues and problems with Power supplier and steps:
Government power supplier is the largest customer consuming 22% of total gas sales volume and 25% by value and they have demanded AGC to increase the gas supply because of the increase in power and they need more gas to meet the rising demand, whereas on other hand power company haven't paid the total outstanding amount of Rs 18 billion. AGC has devised a quantifiable strategy for reducing line losses as they have increased 8.16% and unaccounted-for-gas (UFG) within next years to a satisfactory level.
And AGC looking for in habilitation from its distribution network and install automatic pressure management systems and carry out massive leak rectification and control in theft.
These steps and measures would help the organization to make savings in the next years and management is hoping to bring down the UFG and line losses to 7% and improve earnings and overcome the losses.
Transmission and Distribution System:
Company has launched an ambitious development and expansion plan for 5 year and invited International groups and consultants to provide consultancy to solve their major and key strategic issues. Industrial growth and increase demand of gas domestically and no major discovery of gas forced company for the new trans-national pipeline to be place to meet the needs.
Gas Transmission Expansion Project:
The biggest company is gearing to undertake major expansion project and restructuring the transmission system throughout the country with 441 miles pipeline, the additional energy will be supply to power plants and different manufacturing units and project will be completed in next 2 years with spend of $285,000,000.
Company also engaged in the construction of high and low-pressure distribution systems and bottling of Liquefied Petroleum gas (LPG) and distributes it.
Pakistan's natural gas industry is in a growth stage. Due to the robust growth in demand for gas, Pakistan is likely to face a shortfall in gas supply in the next few years. Pakistan will face a shortage of gas of 1,203mmcfd by 2011. This gap is likely to further widen to11,092 mmcfd by 2025. Gas distribution companies are
spending aggressively, expanding their infrastructure on the back of the government's aim to increase local gas production coupled with import of gas. Pakistan has a well-developed and integrated infrastructure of transporting, distribution and utilization of natural gas. With the increased E&P activity in the country along with enhanced production from the existing gas fields, gas consumption is likely to grow considerably going forward, mainly on the back of strong demand from the power sector which consumes about 36.4% of total gas. According to PPIB, eight new gas/dual fuel power stations will be commissioned by the end of June 2010, which are likely to generate 2,350 MW of electricity.
Consumption of gas rose significantly during FY07-08 in different sectors because of increased investment and due to expansion of different sectors coming online. Number of CNG vehicles increased to 1.35 millions in FY08, showing a jump of 35% on Y-O-Y basis, translating into 29,167 vehicles are being converted to CNG every month. Investment of PKR60bn has been made in the CNG sector during July-March 2007-08 against PKR 20bn invested during the same period last year, registering a growth of 200% on Y-O-Y basis. Power sector has emerged as the largest consumer of gas (36.4%) followed by fertilizer (21.6%), industries (19.1%), household (17.8%), commercial (2.7%), cement (1.1%) and transport (1%) in terms of relative share of gas consumption during the last ten years. Local demand for gas is expected to remain robust supported by strong economic activity in the country and a positive substitution effect resulting from higher crude oil prices. The Ministry of Planning estimates gas demand will exceed supply by 3.21m Tons of Oil Equivalent (MTOE) in 2011.Various proposals are under consideration for import of gas such as IPI Pipeline Project, TAPI Pipeline Project and LNG. The expected increase in demand supply gap is likely to be filled through gas imports.
LNG Mashal Project:
AGC has signed an agreement with oil company and the project so called LNG Mashal looking at increase in gas demand and supply projection in Pakistan indicate a gap of approx. 500 million cubic feet per day by year 2010, this gap held in 2007-08. And this gap can fill by building up to 2,100 mmcfd by 2015.
Importing the gas pipeline earliest could come on stream by 2015 as the Gap coverage strategy gas field discovery.
Advance Technology Need:
In the present world basic social need is the proper supply of Gas from stakeholders up to the satisfactory level, and this demands end-users information system keeping record of diversified network of pipelines with individual facilities throughout the country.
To meet the world challenges and expansion of the company there is a need of advance technology solutions as it is increasingly becoming indispensible for business growth and for better planning, development, management analysis, operation and maintenance and for upcoming projects because company was relying on paper maps which are stored in Karachi head-office and most of the information is outdated as the GIS was in infancy stage.
AGC started thinking to restore and re-deployment of all network maps and make a centralized data system. In year 2006 AGC succeeded to develop its own GIS system and is the first utility company in Pakistan and that was a strong initiative. After the launching of GIS the developers classified the network into groups and the final step of integration, management, organization was done through GIS information system and gas pipeline network to survey data was also done at this stage. Company have gone into remarkable change in terms of business and achieved greater stock values and reduced inventory costs in short technology transformation brought down the errors and managers are more confident and feel secure to make decisions base on the correct information provided now.
Iran Pakistan India (IPI) Pipeline Project:
It has been a decade since talks on the project began in 1993 for the import of gas from Iran through a transnational gas pipeline worth US$ 7.23bn, extending from Iran to Pakistan and India. With the total length of 2,091km divided into two parts, Pakistan will receive 2.1bcfd through IPI Central Route. India will receive its respective share of 3.2bcfd of gas volume at its border through IPI Coastal Route from this high pressure 56 inch diameter pipeline. Inter State Gas System (PVT) LTD a joint venture of AGC and SNGPL is working on laying down the pipeline within Pakistan. Imported gas will be divided among the GDCs according to the demand generated from their respective area of operations. GDCs have to
enter into a purchase agreement with the ISGS. The trilateral talks focused on changes sought by Iran in the gas pricing. Tehran wants the price formula for the gas revised every three years. New Delhi and Islamabad have agreed to Iranian formula of selling natural gas at US$4.93 per mmbtu. Although, all issues have been resolved but still the agreement has not been inked officially at state level and no date has been specified so far for the signing of the agreement.
IPI Gas Pipeline Highlights
The efforts company is taking to control its UFG losses and expenses and expansion programs they are implementing, enhancing distribution of the company in new towns and villages, replacing of old pipelines to new ones in 190 km of area. Company has also addressed the problems rising of financial charges and for this company has taken new loans. There is an increase in assets from Rs 1.5 billion to Rs 1.7 billion shows some positive growth and that they have succeeded in overcome from their crises over the past years.
The new tariff proposed by Government might help in improving the efficiency and maximum utilization of resources hence the performance will be improve and company will enjoy higher net sales with reduce costs and expenses.
In this age where energy requirement of the economy is nothing but increasing, the energy providers of the country have a very important responsibility on there shoulder which should not be taken lightly. Generally to all energy providers and specifically to AGC we recommend the following distinguish points:
Expansion of transmission network which help the people of rural areas to have the benefit of gas in their locality.
Improvement of gas supply to power plants, industrial and commercial sectors including gas supply to previously poor areas in the domestic sector.
Focus to improve friendly and efficient customer services within all regions.
Latest digital prepaid meters should be installed, with improvement ofÂ call centres for an online customer information system.
Improve in the quality of emergency response system.
Improve the quality of human resource by career planning, giving training to employees and development of management hierarchy.
The company will be able to enjoy higher net sales and the company's efforts to reduce unaccounted for gas (UFG) will help reduce costs, thereby accentuating profitability.
Corporate communication initiatives and Community support services to meet the national and social responsibilities, as a good corporate citizen.
It is hoped that the new tariff regime proposed by OGRA will improve efficiency and enable better utilization of resources.