Govt all set to disconnect supply of indigenous gas to commercial consumers

Commercial consumers are avoiding to sign the RLNG contract sent by SNGPL

ISLAMABAD: The present government in order to solve the expected severe gas crisis in the coming winter season is all set to stop supply of indigenous gas to different industries including hotel, shopping malls, bakeries, places of entertainment like cinema, theatre, clubs etc.

According to details, Sui Northern Gas Pipelines Limited (SNGPL) has been informing its commercial consumers that the supply of gas to the commercial consumers will not be possible in the coming winter season owing to the severity of gas shortfall. Therefore gas supply is expected to be disconnected from November 1,2022. 

However, SNGPL in order to ensure continuity of gas supply to the commercial consumers on Re-gasified Liquefied Natural Gas (RLNG) tariff has been offering RLNG supply to those commercial consumers only who will sign RLNG supply contract prior to October 31, 2022.

It is relevant to note that tariff of indigenous gas for commercial consumers currently stands at Rs1,283 per Million British Thermal Unit (MMBTU) while Rs3250 MMBTU is the tariff of imported gas (RLNG) for commercial consumers which is likely to go up in the future due to downward trend of the value of Pakistani rupee against US dollar.

Sources in the industry said that the commercial consumers are avoiding signing the proposed contract sent by SNGPL to them and they are mulling to approach the court to get some relief in this regard. 

All cafes, bakeries, milk-shops, tea stalls, canteens, barber shops, laundries, hotels, malls, places of entertainment like cinemas, clubs, theatres, and private offices, corporate firms, owners of tandoors etc will be affected if SNGPL suspends supply of indigenous gas to them, sources added.

According to the copy available of SNGPL letter which it has been sending to its commercial consumers, the letter states that Pakistan is facing severe shortage of natural gas viz-a-viz increasing demand. 

The indigenous sources of gas are depleting. The demand supply situation is worsening due to an increase in consumption of gas especially in the northern regions while an increase in consumption in central and southern Punjab is also expected in coming days, resulting in severe indigenous gas shortfall. All these factors have led us to the state of affairs where supply of indigenous gas to our valued commercial consumers effective from November 1,2022, will not be possible for us, said the letter.

“We are fully aware that our valued commercial consumers may face hardships due to non-supply of natural gas during the coming winter season. Accordingly, SNGPL is now offering RLNG to such commercial consumers only who sign the attached RLNG supply contract prior to October 31, 2022. Indigenous gas supply to all commercial consumers will be disconnected, therefore, you are requested to sign the contract before October 31, 2022 in order to ensure continuity of gas supply on RLNG tariff,” the letter added.

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

2 COMMENTS

  1. Very good approached /action taken by SNGPL ,keeping in view of gas short fall under winter seasons. Being as pakistani , i appreciate such action , whose resultant to be shifted residential user. Normally , upon gas short fall other commercial user take a advantage thereof and sale the good at their desire price rather than actual.

    (SNGPL) taken very good action in respect of commercial consumers that the supply of gas to the commercial consumers to be not be possible in the coming winter season owing to the severity of gas shortfall. Therefore gas supply is expected to be disconnected from November 1,2022.

    S such as All cafes, bakeries, milk-shops, tea stalls, canteens, barber shops, laundries, hotels, malls, places of entertainment like cinemas, clubs, theatres, and private offices, corporate firms, owners of tandoors etc will be affected.

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