ISLAMABAD — The government is preparing to allow new gas connections at imported LNG rates, currently around Rs3,900 per mmBtu, nearly four times the previous connection fee, according to sources. The Petroleum Division has submitted a summary to the federal cabinet seeking approval, with a first-year target of 120,000 connections.
Priority will be given to applicants who had earlier demand notices or paid urgent fees but were blocked by the moratorium. These applicants, totaling around 250,000, will need to file affidavits confirming they will not pursue past claims or the fee increase in court. The new connection fee is expected to range between Rs40,000 and Rs50,000, with consumers billed at the notified re-gasified LNG price.
Currently, more than 3.5 million applications for new gas connections are pending, while companies like Sui Northern Gas Pipeline Limited (SNGPL) ration supplies to domestic consumers for 6-9 hours daily due to winter shortages. The move to lift the ban is intended to address a continuing glut in the gas network that threatens pipeline integrity and Pakistan’s international commitments.
The government has noted that LNG-based piped gas remains 35-40% cheaper than liquefied petroleum gas (LPG), which costs around Rs5,300 per mmBtu for millions of lower-income consumers. Sources said the measure will help manage surplus LNG, created in part due to lower domestic demand and underutilisation in power sector “must-run” projects.
Domestic gas fields producing over 300 mmcfd have been partially shut to accommodate imported LNG, causing weekly losses for producers and affecting future exploration. With rising LNG imports, the government faces higher foreign exchange needs, while circular debt continues to strain the energy sector.
The first-year rollout of 120,000 connections is expected to increase further in subsequent years, balancing the LNG surplus while providing additional revenue opportunities for gas companies and addressing long-standing supply constraints.
