New domestic consumers to benefit from RLNG supply amid local gas scarcity

New domestic consumers and private housing societies will be supplied with imported re-gasified liquefied natural gas (RLNG) as the caretaker government has approved the policy in view of the depleting natural gas production. 

The News Reported, quoting a senior official in the Energy Ministry, that this decision was made by the Apex Committee of Special Investment Facilitation Council (SIFC) in its 9th meeting.

As per the approved policy, the RLNG cost of over $12 per MMBtu (Rs3700 per MMBtu) will be fully recovered from the inhabitants of the housing societies, including transportation and distribution allowed losses. 

The official said that about 200 housing societies require gas connections, but the government has informed them that Pakistan's natural gas production has dropped to just 3.2 billion cubic feet per day (bcfd) and is expected to deplete further in the next six to seven years.

There was no moratorium on the provision of RLNG to housing societies, but gas companies were under the wrong impression because of the ban on local gas connections imposed by the federal cabinet in 2017, he clarified.

He added that the Petroleum Division authorities have decided to issue clear directions to the gas companies to start giving RLNG connections to all housing societies that are not connected to the existing gas distribution network.