ISLAMABAD:The federal cabinet has stopped sui companies from acknowledging new applications for indigenous gas connections particularly and only applications submitted by consumers on RLNG supply would be acknowledged.
According to sources privy to the development, in a landmark energy policy decision, federal cabinet has lifted the years-long moratorium on new household gas connections but ruled that all future connections will be provided exclusively on re-gasified liquefied natural gas (RLNG) at Oil and Gas Regulatory Authority (OGRA)–determined tariffs, without any subsidy.
The cabinet approved the move at its meeting on September 10, according to an official communication of the Petroleum Division with Chairman OGRA, Managing Director of SNGPL and Acting MD of SSGCL . The decision directs Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to immediately begin processing applications for RLNG-based domestic connections, while halting all new requests for indigenous system gas.
“The moratorium imposed on provisions of new connections may be relaxed allowing Sui companies to process all applications for provision of connections on RLNG based on OGRA determined and notified monthly RLNG tariff,” said available document. It emphasized that no new consumer would be eligible for subsidised supply.
