LAHORE: The Sui Northern Gas Pipelines Limited (SNGPL) will provide 30,000 Regasified Liquefied Natural Gas-based new domestic connections to the consumers till June 30 this year.

However, the ban on the provision of indigenous system gas to domestic consumers will continue for an indefinite period, Dawn has learnt.

“As per the government policy, the ban on the RLNG-based new domestic consumers has been lifted. And now, under this policy, we will provide 30,000 new connections till June 30 to those seeking RLNG,” SNGPL managing director Amir Tufail told Dawn on Tuesday.

According to Mr Tufail, the backlog in the domestic sector in the service areas of the company, especially Punjab, has reached four million that included up to 50,000 desiring RLNG-based connection having costlier tariff than the normal/indigenous gas-based connections.

Ban on indigenous gas supply to continue

“I don’t know about exact number of such applicants. But I can say the number is probably up to 50,000,” he added.

To a question, he said the RLNG-based new domestic connections are allocated for the newly-developed housing schemes having required underground gas infrastructure, approvals and NOCs.

To another question, he said he didn’t know when the government would allow the company to start providing new indigenous gas connections.

On the other hand, the Sui Southern Gas Company (SSGC) has also started giving RLNG-based gas connections reportedly to the consumers in its service areas (Sindh and Balochistan). Under the plan, the company will provide connections to the consumers living in newly-developed housing projects.

“Yes, the SSGC too has started providing new RLNG-based gas connections to domestic consumers,” confirmed the SNGPL MD when asked.

It is pertinent to mention that the ban on the new connections had been imposed around four years back keeping in view the declining indigenous gas reserves. However, later, the government following detailed deliberations finally decided to provide RLNG-based connections to the extent of domestic consumers in newly-developed housing schemes.

During the third week of January 2023, the then minister of state for petroleum Musadik Malik had told the Senate that it would be unwise to give new connections under the prevailing circumstances since the country produced a total of 3,200mmcft of gas, 200 of which was used for extraction and 1,400mmcft went directly from the wells to power and fertiliser sectors.

He had also said the requirement of SNGPL for domestic consumers in Punjab and Khyber Pakhtunkhwa alone stood at 1,400mmcft against the supply of 680mmcft in December and January. He also had pointed out that gas production was depleting by 8-10pc every year, therefore, the ban on new connections was in national interest.

Mr Malik had also recalled that the ban on new connections had been clamped by the Pakistan Tehreek-i-Insaf (PTI) government which also amended the Ogra law to ban new connections until the gap between demand and supply was met. He, however, termed it a wise decision stating that there was no need to revisit it.

Published in Dawn, March 6th, 2024