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Pakistan has invited Expressions of Interest from consultancy firms to assess and propose remedies for unaccounted-for-gas losses at SNGPL and SSGC, with submissions due by October 6, 2025.
The government has decided to hire consultants to conduct a comprehensive study into unaccounted-for-gas (UFG) losses faced by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC). According to the Ministry of Energy (Petroleum Division), the initiative aims to identify the scale and root causes of losses across the utilities’ transmission and distribution networks, which continue to undermine financial performance and operational efficiency.
Unaccounted for gas (UFG) remains one of the most persistent challenges confronting Pakistan’s gas sector. Industry experts note that losses stem from multiple factors, including aging infrastructure, theft, inaccurate measurement, and broader inefficiencies in the network. These losses, often recorded as UFG on company balance sheets, have long been a source of contention between the utilities and the Oil and Gas Regulatory Authority (OGRA), which regulates tariffs and operational standards.
The scope of the consultancy assignment has been defined broadly. Selected firms will be required to assess and quantify UFG losses across both companies’ networks, identify and analyze the causes, benchmark current practices against international standards, and propose practical solutions tailored to Pakistan’s operational environment. Importantly, the consultants will also be tasked with drafting a roadmap outlining implementable reforms with measurable outcomes.
To ensure effective execution, the government has mandated that a Pakistani consulting firm must serve as the lead partner, responsible for overall coordination with the Sui companies and the Petroleum Division. These local firms are permitted to partner with international technical consultancy companies of global repute. The evaluation process will consider the combined credentials of both local and international partners.
Mandatory shortlisting criteria specify that the local lead firm must demonstrate experience in at least one completed assignment directly focused on UFG or gas loss studies, including both quantification and identification of causes. Additionally, the firm must show at least one more completed assignment in related areas, such as natural gas measurement systems, corrosion management and integrity surveys, or gas transmission and distribution operations.
For eligibility, Pakistani firms must hold valid registration with the Pakistan Engineering Council (PEC) along with all applicable federal and provincial tax authorities. The international partner firms must provide proof of registration with relevant professional or regulatory bodies in their home jurisdictions. Furthermore, all bidders are required to furnish a declaration of non-involvement in ongoing litigation or arbitration, submitted on a Rs. 100 non-judicial stamp paper.
The issue of gas losses has long weighed heavily on Pakistan’s energy sector. Historical data from the petroleum ministry show that UFG levels at both Sui companies have consistently exceeded the benchmark levels allowed by OGRA, creating financial strain not only for the utilities but also for the broader economy. Analysts have frequently pointed out that reducing UFG could save Pakistan’s energy sector billions of rupees annually, potentially lowering costs for consumers and improving energy security.
Globally, several countries have successfully tackled similar problems by adopting advanced metering infrastructure, real-time monitoring systems, and stricter enforcement measures against theft. In this context, the government’s decision to benchmark Pakistani practices against international standards signals an intent to modernize the gas distribution framework.
The deadline for submission of Expressions of Interest is October 6, 2025. Once shortlisted, firms are expected to compete for the contract through a formal request for proposals (RFP) process. Industry observers believe that involving international expertise alongside domestic firms could help ensure that recommendations are not only technically sound but also realistically implementable within Pakistan’s regulatory and operational landscape.
The move comes at a critical juncture for Pakistan’s energy sector, which continues to grapple with high circular debt, rising demand, and infrastructure challenges. By addressing UFG losses systematically, the government hopes to restore efficiency, improve corporate governance at the Sui companies, and ultimately deliver more reliable and cost-effective gas supplies to millions of consumers.
Unaccounted-for-gas reduction remains central to energy sector reforms, and the outcome of this consultancy assignment will likely shape long-term policy measures to stabilize Pakistan’s natural gas distribution system.
