In a recent meeting of the Senate Standing Committee on Petroleum, officials from the Sui Southern Gas Company (SSGC) hinted at a potential increase in domestic gas tariffs, citing the need for uninterrupted supply and an end to gas load-shedding according to remarks made during a meeting of the Senate Standing Committee on Petroleum.
The session, focused on the ongoing crisis of low gas pressure and frequent outages, also featured input from the Managing Director of Sui Northern Gas Pipelines Limited (SNGPL). He attributed the current load-shedding issues primarily to Pakistan’s growing dependence on imported Liquefied Natural Gas (LNG). Currently, domestic production only meets 45% of the country’s gas requirements, with the remaining 55% being sourced through imports.
Efforts are underway to restore gas supply in Lahore, the SNGPL chief stated, while also assuring that concerns raised by Senator Kamil Ali Agha would receive direct attention. The committee was further informed that during Ramadan alone, over 25,000 consumer complaints were registered regarding gas shortages. Over the past year, 132,376 complaints related to low gas pressure were recorded, with more than 131,000 reportedly resolved.
Lawmakers were also given reassurance that improvements in the complaint response mechanism are being pursued. Concluding the briefing, the Senate committee regarded the public grievances on gas supply as addressed for the time being.
Petroleum Minister Ali Pervaiz Malik also addressed the gathering, acknowledging that the petroleum sector had received less focus recently due to priority being given to the power sector. He observed a decline in domestic gas consumption, noting that even household cooking is now increasingly reliant on imported LNG.
The minister also admitted that implementation of key oil refinery policies has been delayed, though he highlighted a positive trend of rising foreign investment in Pakistan’s mineral sector.
In a separate update, the Director General of Minerals informed the committee about the Reko Diq project. Production from the site is expected to commence by 2028, with the mine projected to operate for 37 years and generate an estimated cash flow of $70 billion.
