New gas connections to be based on imported RLNG

LAHORE: The federal government has decided that all new gas connections will now be based on imported Regasified Liquefied Natural Gas (RLNG), which will be significantly more expensive than the existing natural gas connections, ARY News reported on Saturday, citing sources in the Petroleum Division.

According to the sources, the cost of new RLNG-based connections will be 2.5 to 3 times higher than those based on indigenous natural gas, as RLNG tariff will be linked to international crude oil prices.

Instructions have been issued to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to begin issuing new connections under this policy.

The distribution of new connections will be carried out in three phases.

First priority will be given to consumers who have already submitted their demand notices, followed by those submitting an urgent fee, while applicants who filed applications without payment will be accommodated in the final phase.

Officials said the move was necessary due to rapidly depleting local gas reserves and a surplus of imported RLNG.

Notably, the federal government has decided to lift the ban on domestic gas connections, which was originally imposed in 2021.

The announcement was made by Minister for Parliamentary Affairs Tariq Fazal Chaudhry in a presser after a federal cabinet meeting chaired by Prime Minister (PM) Shehbaz Sharif.

Speaking to newsmen, Tariq Fazal Chaudhry said that the prime minister had decided to lift the ban on domestic gas connections imposed in 2021, addressing a longstanding public demand.

The minister added that the two gas supply companies had fulfilled all necessary requirements and would begin processing pending applications as soon as the cabinet’s decision was officially notified.