Karachi: At a recent Pakistan Investor Connect Conference organized by Topline Securities, key insights were shared by Sui Southern Gas Company (SSGC) and Lotte Chemical Pakistan (LOTCHEM) about their operational updates and future strategies.

According to JS Global, SSGC's Managing Director, Mr. Amin Rajput, outlined the company's strategy to bolster earnings through a better regulatory environment and significant capital expenditure. The company's JJVL project is anticipated to generate Rs2.0-2.5 billion annually, with half of this recognized as non-operating income under OGRA regulations. This move, alongside plans for Rs30 billion in annual capital expenditure focused on network rehabilitation, aims to enhance system reliability and reduce gas losses.

SSGC is also finalizing agreements to supply gas to major industrial consumers, which is expected to improve operational efficiency. Changes in gas allocations to the fertilizer sector and adjustments in the UFG benchmark were also highlighted as part of the company's strategy to navigate current economic conditions.

Meanwhile, LOTCHEM's CEO, Mr. Adnan Afridi, detailed the company's vision for diversification and sustainability. The company is pursuing energy cost optimization and integration initiatives, including a strategic acquisition of Engro Polymers to achieve energy synergies. LOTCHEM's energy initiatives are projected to yield significant cost savings, bolstered by government tariff incentives.

LOTCHEM is also addressing supply chain challenges due to regional conflicts by exploring partnerships for a local paraxylene plant. The imposition of Anti-Dumping Duties on Chinese PTA imports has improved LOTCHEM's competitive position, although domestic PTA demand has seen a slight decline.

Both companies emphasized their strategic focus on leveraging regulatory and market dynamics to navigate economic challenges and ensure long-term sustainability.