LAHORE: Sui Northern Gas Pipelines Limited (SNGPL) is facing losses in supplying gas to domestic consumers, which is contributing to gas loadshedding, according to a senior official of the company.

The official said that pending applications for new industrial gas connections are being addressed on a priority basis, and overbilling-related complaints will also be resolved soon. A focal person will be appointed to ensure swift resolution.

“Domestic consumers are being supplied gas (both indigenous and RLNG) at a loss, with only around 40 per cent recovery, which is one of the reasons for gas load-shedding. Moreover, three million applications for new connections are also pending,” SNGPL Managing Director Aamir Tufail said while addressing the Lahore Chamber of Commerce & Industry (LCCI) on Monday.

Mr Tufail told the business community that where industries or industrial areas require additional gas, dedicated pipelines would be laid upon request.

He acknowledged that gas for industries is expensive and that reducing gas tariffs is beyond SNGPL’s authority. However, industries can be facilitated through gas blending. “The industry plays a vital role in national economic growth, and its development is equally important for SNGPL, as industrial growth leads to increased gas demand,” he added.

LCCI Acting President Engr Khalid Usman said that gas is the backbone of Pakistan’s industrial sector, and its fast-depleting reserves are creating various challenges for industrialists across the country, including Lahore.

He noted that gas makes up 29pc of Pakistan’s energy mix. Promoting alternative energy sources, he said, would allow gas to be diverted from power generation to industrial use. “SNGPL’s gas losses were 5.15pc in 2022–23, which were reduced to 4.93pc in 2023–24,” he said.

He raised concerns over low gas pressure in many industrial areas, which severely affects production, causing significant losses and financial damage to manufacturing units.

He also criticised the restriction on new domestic gas connections, stating it harms SNGPL’s long-term growth. LCCI members are reportedly facing unexpected gas shutdowns, disrupting factory schedules and causing delays in export orders.

Engineer Usman said gas tariffs in Pakistan are very high, creating serious challenges for the engineering and production sectors. Recent RLNG price hikes of around 4.9pc have further escalated industrial costs. He stressed the need for reducing prices.

He proposed that dedicated gas lines be allocated for industrial zones to ensure stable pressure.

“Export-based industries, in particular, should be provided gas at discounted rates to help them stay competitive globally and reduce the national trade deficit,” he concluded.

Published in Dawn, June 3rd, 2025