RP HHFH

Regulatory Procedure
Obtaining Natural
Gas Connection
Revised on May25, 2006
Prepared By: Policy Planning
Small and Medium Enterprise Development Authority
Ministry of Industries, Production & Special Initiatives
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
LAHORE
6
th
Floor, L.D.A Plaza,
Egerton Road
Lahore-54792
Tel: 111-111-456
Fax: (042) 6304926
helpdesk@smeda.org.pk
REGIONAL OFFICE
SINDH
5th Floor, BahriaComplex 2,
M.T.Khan Road,
Karachi
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk
REGIONAL OFFICE
NWFP
Ground floor
State Life Building
The Mall, Peshawar
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
REGIONAL OFFICE
BALOCHISTAN
Bungalow No. 15-A
Chaman HousingScheme
Airport Road, Quetta.
Tel: (081) 2831702/ 2831623
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
Obtaining Natural Gas Connection Policy & Planning
2
TABLE OF CONTENTS
1. Introduction to SMEDA 03
2. Role of Policy Planning Department 03
3. Sui Northern Gas Pipeline Limited 05
4. How to get a domestic connection 06
5. Connection on urgent fee basis 07
6. Commercial and industrial consumers 07
7. How to get Commercial and industrial connections 08
8. Lists of documents for commercial and industrial connections 09
9. Flow Chart for domestic connections 10
10. Flow chart for Industrial and Commercial connections 11
11. annexures I :
(a) Tariffs Structure 12
(b) Specimen Affidavit 13
12. Annexures II
SNGPL List of office addresses 14
3
INTRODUCTION OF SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established with the
objective to provide fresh impetus to the economy through the launch of an aggressive SME
development strategy.
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved overhauling of the regulatory environment by taking into consideration other
important aspects including finance, marketing, technology and human resource development.
After successfully qualifying in the first phase of sector development SMEDA reorganised its
operations in J anuary 2001 with the task of SME development at a broader scale and enhanced
outreachreach in terms of SMEDAs areas of operation. Currently, SMEDA along with sectoral
focus offers a range of services to SMEs including over the counter support systems, exclusive
business development facilities, training and development and information dissemination
through a wide range of publications. SMEDAs activities can now be classified into the three
following broad areas:
1. Creating a Conducive Environment; includes collaboration with policy makers to devise
facilitating mechanisms for SMEs by removing regulatory impediments across numerous
policy areas
2. Cluster/Sector Development; comprises formulation and implementation of projects for
SME clusters/sectors in collaboration with industry/trade associations and chambers
3. Enhancing Access to Business Development Services; development and provision of
services to meet the business management, strategic and operational requirements of
SMEs
SMEDA has so far successfully formulated strategies for sectors, including fruits and
vegetables, marble and granite, gems and jewellery, marine fisheries, leather and footwear,
textiles, surgical instruments, transport and dairy. Whereas the task of SME development at a
broader scale still requires more coverage and enhanced reach in terms of SMEDAs areas of
operation.
Along with the sectoral focus a broad spectrum of services are now being offered to the SMEs
by SMEDA, which are driven by factors like enhanced interaction amongst the stakeholders,
need based sectoral research, over the counter support systems, exclusive business
development facilities, training and development for SMEs and information dissemination
through wide range of publications.
ROLE OF POLICY & PLANNING DEPARTMENT
The Policy & Planning department of SMEDA is the hub of policy and regulatory research that
feeds national, provincial and local government institutions, SME associations, industrial
clusters and individual entrepreneurs with the ultimate objective of creating a conducive
business environment. It has a mandate to identify and where suitable initiate strategic projects.
The Policy & Planning of SMEDA plays a key role in providing an overall policy direction to
SMEDA, under which SMEDA provides support to SMEs. The P& P provides guidance based
4
on field realities pertaining to SMEs in Pakistan and other parts of the world. Information
resource center of SMEDA is an integral part of Policy & Planning department while
development of Regulatory Procedures is a part of an overall information dissemination function
of the department. In order to facilitate SMEs at the micro level Policy & Planning department
has developed user-friendly systems which provide them detail description of the Laws and
Regulations including the process and steps required for compliance.
5
SUI NORTHERN GAS PIPELINE LIMITED
Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas Company in
the country, engaged in the business of transmission and distribution of natural gas
besides construction of high pressure transmission and low pressure distribution
systems. It is also engaged in bottling and distribution of liquefied petroleum gas (LPG)
in Pakistan.
CORPORATE PROFILE
The Company has an authorised capital of Rs. 5,000 million, of which Rs. 4,340 million
is issued and fully paid up. The Government and Government controlled institutes hold
the majority of the shares (60%). The remaining 40% are owned by the private sector.
The shareholding pattern as on 30
th
J une 2005 was as follows:
SHARE HOLDERS %
i) President, Islamic Republic of
Pakistan
36.00
ii. Dawood Hercules Chemicals Limited
(Associated Company)
11.74
iii) Banks, Development Finacial
Institutions, Non- Banking Fianacial
Instituitions, Insurance Companies,
Modarbas and Mutual Funds
17.85
iv) General Public
8.90
v) Associated Companies, Undertaking
and Related Parties
17.84
vi) NIT AND ICP 0.08
vii) The Deputy Adminstration
abandoned properties foundations,
socities and institutions
7.59
Total 100.00
OBJECTIVE
SNGPL was incorporated as private company in J une 1963, with the object of
transmission and distribution of natural gas in the provinces of Punjab and Northwest
Frontier.
SNGPL's mission statement is 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."
HOW TO GET NATURAL GAS CONNECTION
There are three types of connections available for applicants, depending on the usage of
Natural Gas, which are as follows:
1. Domestic
2. Commercial
6
3. Industrial
The registration procedure and evaluation varies with the type of connection being
applied for:
DOMESTIC CONNECTION
The application form for obtaining a domestic connection (Urgent or Ordinary) of Natural
Gas is available free of charge from the Sui Gas office and it can also be downloaded
from http://www.sngpl.com.pk/index.jsp?Customer-Services/appl_form_down.htm
The formis submitted to the regional office along with the following documents
(a) A copy of the applicants identity card
(b) Photocopy of registry of land proving the size of the plot for which the connection is
required.
(c) Gas bill of the neighbour to nearest to your home
(d) In case of new area or first commissioning in lane mention on application as new
area.
At the time of submission of the form an acknowledgement letter is given to the
applicant which states that the department will contact the applicant in approximately
6 six weeks.
A sales representative surveys the site of the applicant and checks whether the site
is online or common.
The site is considered online if the Gas pipeline is laid close to the site, and is
considered to be common if a gas link is within 5 feet of the applicants premises.
The sales officer submits a drawing of the site to the officer in-charge
The in-charge sales officer reviews the case and an entry is logged with dates
referring to the date of acknowledgement, and the survey.
After the entry a demand notice is issued to the applicant
The applicant submits a security deposit, which is calculated according to the area of
the site.
The accounting department forwards the case information to the sales department
within a week of the payment of the security deposit.
The security for domestic gas connection according to plot sizes is as follows:
SIZE OF PLOT Service Line Charges Security Fee Total
UP TO 10 MARLAS Rs 1500 Rs 1500 Rs 3,000
ABOVE 10 MARLAS Rs 2000 Rs 3000 Rs 5,000
The sales department issues a Consumer Master Card (CMC) in the name of the
applicant and the Gas Connection is provided to the applicant within one week.
The consumer is allowed to lay the in-house piping for the purpose of connection, the
authorities provide the connection and the meter
After the meter has been installed, the consumer master card is forwarded to the
billing department for processing. The billing department is also responsible for
monitoring the monthly bill.
The fee for processing the application of a domestic connection is Rs 200, which is
adjustable in the first bill.
7
REQUEST FOR DOMESTIC GAS CONNECTION ON URGENT FEE BASIS
If a domestic consumer requires a connection on an urgent basis, it can be obtained by
using the facility for urgent connections. The department issues the proposal
letter/demand notice for making necessary payments i.e. Security Deposit and service
line cost sharing charges, in two days. This demand notice is issued after six to seven
weeks, under normal procedures. The security deposit and service line charges are in
addition to the urgent fee paid for the Gas Connection. The Fee varies with the size of
the plot for which the Connection is required. This facility is available for obtaining a
domestic connection only. The urgent fees amounting to Rs. 3500/- is payable alongwith
service line charges and security fee for urgent cases.
COMMERCIAL AND INDUSTRIAL CONSUMERS
COMMERCIAL CONSUMER
If the consumer is not producing a finished product and requires a gas connection for
usage on business premises, then the applicant is termed as a commercial consumer
The commercial consumers are further classified as:
a) low pressure commercial consumers
Low-pressure commercial consumers are those who are running a commercial
concern and are using upto 300 cubic feet per hour of natural gas
The applicants are required to pay the security, calculated on the load being used, in
addition to Rs. 5000 as service line charges which is the fixed amount for low-
pressure commercial consumer
The monthly charges include sales tax, with holding tax and meter rent
b) high pressure commercial consumers
High-pressure commercial consumers are those who are have a usage of more than
300 cubic feet per hour of natural gas
The applicants are required to pay a security, which is calculated on the basis of
actual load being used, the total installation and service line charges required to get
the high pressure commercial connection.
The requirements for this connection are the same as those for an industrial
connection, however the tariff is higher.
The monthly charges include sales tax, with holding tax and meter rent
INDUSTRIAL CONSUMER
The consumer is defined as an industrial consumer on two requirements, which are as
follows:
1) Whether the business concern in producing finished products or not.
2) The amount of load is being used by the consumer
8
Where the consumer/business concern is using 500 cubic feet of natural gas and is
producing a finished product, maybe categorised as an industrial consumer.
The sales tax, with holding tax, and Meter Rent are included in the monthly bill.
Some businesses producing finished products may be classified as low-pressure
commercial consumers on the basis of the load of gas being used. The final
classification depends on a physical evaluation and survey of the premises
conducted by the sales officer
CALCULATION OF LOAD:
The sales representative conducts a physical survey of the applicants site, and makes
an estimate of the load of gas to be used by the applicant at the business premises. The
load is calculated according to an approximate appliance flow rate, which calculates the
amount of gas to be used according to the appliance being used. The load of gas to be
used is different for different businesses, such as boilers, large stoves for hotels, casting
machines, steel factories etc.
HOW TO GET THE COMMERCIAL AND INDUSTRIAL CONNECTIONS
The process for obtaining a commercial gas connection or an industrial gas connection
is similar to that of a domestic connection. This has been outlined below:
An application form is submitted with the Sui Gas Authorities, and a survey of the
premises is conducted in approximately six weeks of the issuance of the
acknowledgement slip.
The security deposit is to be submitted after the issuance of the demand notice.
The amount of security to be deposited is calculated according the load of the Gas
used by the consumer.
The Service line Charges for a low-pressure commercial connection are Rs 5000.
The service line charges for high-pressure and industrial consumers is the actual
cost that occurs in the installation.
The Sui Gas Authorities use an approximate appliance flow rate to calculate the
security and service line charges.
This is done by calculating the average load of gas used by the appliance or
machine, such as a boiler, a casting machine etc. these charges are added to the
security.
The approximate appliance flow rates are rates that are calculated according to the
load of gas being used by the applicant.
On the basis of this a three-month advance bill is required to be paid in addition to
the security deposit.
The security fee for commercial and industrial applicants is equivalent to estimated 3
months of gas consumption/connection load.
For an Industrial Connection, the applicant is required to pay the service line charges
the material to be used in installation, in addition to the security deposit.
The application-processing fee for commercial applications is Rs. 500 for both high
and low pressure.
No processing fee is charged for an industrial Connection.
The tariffs for commercial consumer are higher than that of an industrial consumer.
9
The commercial connections are provided on a first come first serve basis.
The approximate time period, for domestic and commercial connections is eight
weeks.
However, the time for installation of an industrial connection depends on the
applicant as to when he submits the demand notice with the security deposit. Once
this is completed the process of installation of the connection is initiated.
The documents to be attached with the commercial application form are as follows:
Documents to be submitted by Low Pressure Commercial Consumers
National ID Card Photocopy.
Photocopy of lease agreement if you are a tenant, photocopy of registry if you are an
owner
NTN/TR certificate from Income Tax Department.
Partnership deed in case of unregistered partnership/association of persons
Affidavit of proprietorship/ownership in case of sole proprietorship
Article/Memorandum of association, in case of Public/private companies
The photocopy of the power of attorney/an affidavit in case of individual sole
proprietorship or un-registered partnership firm.
Certificate from Registrar of the Firms, if it is a registered firm.
The list of the documents to be submitted with the application for industrial or high-
powered commercial connection is as follows:
List of Documents to be Submitted by Industri al/ High Pressure Commercial
Consumers
National ID Card Photocopy
Photocopy of layout plan of factory premises
NTN or TR certificate from Income Tax Department in respect of your concern
Photocopy of registry of land/factory (if you are owner)
Photocopy of lease agreement (if you are tenant)
Photocopy of partnership deed along with list of partners giving their fathers name,
permanent addresses. GIR numbers etc, (in case of partnership)
Photocopy of certificate from registrar of firm in case of registered partnership
Power of attorney in case of Partnership firm, in the name of the person who is
authorised to sign of behalf of the firm
Memorandum of articles (for limited firm) along with copy of resolution for power of
attorney from the Board of Directors of the firm
Affidavit of Proprietorship/Ownership (In case of sole Proprietorship)
For an industrial connection an Annex A has to be submitted by the applicant as
well, it is included in the Annexure B of this document.
The following flow charts illustrate all requirements for a natural gas connection
(domestic and industrial/commercial):
10
How to obtain a domestic connection
Domestic Application Form to be filled by
consumer
A copy of the
identity card
Photocopy of
registry of land
proving the size of
the plot for which
the connection is
required
Submit the application form along with the required documents to
the relevant office in the area.
Demand notice(s) to be issued by
SNGPL after drawing of premises
is approved, after which the case is
forwarded to the accounts
department
Sales Department issues a Consumer Master Card (CMC) and installs
the connection at the premises as early as the queue allows the
After installation of connection at the applicant site, the
CMC is forwarded to the billing department. The
application-processing fee is adjusted in the first bill
paid, by the consumer.
Security to be deposited,
after the issuance of
demand notice:
Security for 10 marla
house is RS 3,500, for 10
marla to 1 kanal RS 5,000,
for any area larger than 1
kanal the security to be
deposited is RS 10,000.
The Sales Representative conducts a survey of the site after
the issuance of the acknowledgement slip
Accounts office then forwards the case to the sales department
after completion of documents
This whole process
takes six weeks
Within one week
Issuance of
acknowledgement slip
11
How to obtain a Commercial/Industrial connection
Annexure I
-Application form for a commercial connection
-Application form for an industrial connection
List of documents to be submitted for
industrial/high pressure commercial/low
pressure consumers:
NTN or TR certificate from Income Tax
Department in respect of your concern
Photocopy of lease agreement if rented
premise, photocopy of registry if land is
owned
Photocopy of partnership deed along
with list of partners giving their fathers
name, permanent addresses. etc, (in
partnership)
Photocopy of certificate from registrar
of firm in case of registered partnership
NOC (No Objection Certificate) from
LMC/LDA (within Municipal limit)
Affidavit of Proprietorship/Ownership (If
Proprietorship)
List of documents to be submitted only by
industrial and high-pressure commercial
applicants, in addition to the list on the right:
Photocopy of layout plan of factory
premises
Power of attorney in case of partnership
firm, in the name of the person who is
authorised to sign of behalf of the firm
Memorandum of articles (for limited firm)
along with copy of resolution for power of
attorney from the Board of Directors of
the firm
Application form to be submitted with required documents, after which the
acknowledgement slip is issued in the name of the applicant.
Demand notice(s) to be issued by SNGPL after drawing of premises
is approved, and the case is forwarded to the accounts department
Sales Department issues a
Consumer Master Card
(CMC) and installs the
connection at the premises as
early as the queue allows the
applicants turn
After installation of connection at
the applicant site, the CMC is
forwarded to the billing
department. The application-
processing fee is adjusted in the
first bill paid, by the consumer.
Accounts office then forwards the case to the sales department
after completion of documentation
The security to be
deposited is
calculated on the
basis of the load to be
used by the applicant,
after a physical survey
of the site
The Sales Representative conducts a survey
of the site after the issuance of the
acknowledgement slip within six weeks
In one week
12
SUI NORTHERN GAS PIPELINES LIMITED
GAS TARIFF
Tariffs for domestic consumers
Date of Implementation 02.02.05
Rs./MMBTU
01.07.05
Rs./MMBTU
01.01.06
Rs./MMBTU
A-Domestic Consumers
B- Special Domestic
First 1 HM3 Per Month 73.95 73.95 80.98
Next 1 HM3 Per Month 120.61 127.62 147.41
Next 1 HM3 Per Month 192.96 204.17 235.84
Next 1 HM3 Per Month 251.01 265.59 306.79
All over 4 HM3 per month - - -
Minimum per month (A&B) 99.74 99.74 109.22
C-Bulk Domestic 120.61 127.62 147.41
Minimum Per Month 406.69 430.32 497.07
Tariffs for Industrial Consumers
Rs./MMBTU
01.07.05
Rs./MMBTU
01.01.06
Rs./MMBTU
General industrial Consumers 197.11 208.56 240.91
Minimum per month 6646.43 7032.59 8123.37
Tariffs for commercial consumers
Rs./MMBTU
01.07.05
Rs./MMBTU
01.01.06
Rs./MMBTU
Commercial Consumers 221.78 234.67 271.07
Minimum (per month) 1046.96 1107.79 1279.65
13
The Specimen Affidavit for Industrial/High Pressure Commercial/Low Pressure
Commercial Consumers
(A) I,S/O
..
resident
of.solemnly affirm
and declare that I am the sole proprietor of the firm/shop..I
hereby solemnly affirm and declare that
1) There is no partner in the said firm/shop and I am the exclusive and sole proprietor of
the
firm/shop
..
2) I shall be personally responsible for all the matters relating to Sui Northern Gas
Pipelines Limited.
3) I shall abide by all the terms and condition of the gas supply contract signed by me
for supply of gas at my factory/shop/premises and regulations enforced for time to
time by Sui Northern Gas Pipelines Limited.
4) I hereby agree to pay gas bill/dues on the due date as per Companys rules and
procedure.
SIGNATURE..
ATTESTED BY OATH COMMISSIONER (Proprietor/Declarant)
14
Annexure II
SUI NORTHERN GAS PIPELINES LIMITED
LIST OF SNGPL OFFICES ADDRESS
1) Sui Northern Gas Pipelines Limited
21-Kashmir Road
Lahore
21-Industrial Area
Gurumanghat Road
Gulberg-III, Lahore
City Sub-Office, Malwada Complex
Lahore
Mehran Block, Allama Iqbal Town
Lahore
Mudassar Shadi Hall, Multan Road
Lahore
Ichhra, Lahore
Shahdara, Lahore
Muridke
Shekhupura
A-7, Piran Ghaib
Multan
Okara
Sahiwal
Khanewal
Chichawatni
Mian Channu
292-Alipur Road
Muzaffar Garh
Kot Addu
Taunsa
D. G. Khan
7-W, Service Road
Shujhabad
2-Khalid Road
Peshawar Cantt
Charsada
S.N.G.P.L House,
Malakand Road, Baghdada
Mardan
2-Sharah-e-Quaid-e-Azam
Nowshera
Consumer Service Centre
Kohat
Mangora/Swat
15
Sector I/9, Industrial Area
Islamabad
J ehlum
Kahuta
Attock
Chakwal
Fateh J ang
Gujar Khan
Rawalpindi Cantt
Consumer Service Centre, Satellite
Town Rawalpindi
Wah Cantt.
Sargodha Road
Faisalabad
Babar Chowk
Faisalabad
Chiniot
J aranwala
J hang
Toba TeK Singh
Gojra
Khurarianwala
Shorkot
Chanab Nagar
Hafizabad
Wazirabad
Kamoke
Daska
Sargodha
Bhalwal
Daud Khal
Mianwali
Kot Moman
M.A, J innah Road
Gujranwala
Gujrat
16
Sialkot
Bahawalpur
Rahim Yar Khan.
Khanpur
Sadiqabad
Ahmadpur East
Mansehra Road
Abbottabad
Mansehra
Haripur

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