Sui Northern Gas Pipelines Limited (SNGPL) has postponed the allocation of 35mmcfd pipeline capacity to Universal Gas Distribution Company Ltd (UGDCL), just weeks after initially approving the plan, Dawn reported. Â
The decision was made during a board of directors (BoD) meeting in early September, following internal discussions and advice from the Ministry of Energy.
As per the report, SNGPL’s board had initially approved the allocation on August 15, 2025, based on management recommendations and ministry guidance. The approval outlined the allocation of additional capacity—25mmcfd on a firm basis through 2033 and 10mmcfd on an interruptible basis for six months. However, after further deliberation, the board decided to defer implementation of this decision.
The move comes as SNGPL continues to face ongoing challenges related to natural gas management and an oversupply of liquefied natural gas (LNG). Officials revealed that the company has quietly begun implementing gas rationing, even before the winter season, in an effort to manage unaccounted-for gas (UFG) losses.
The rationing includes limiting gas supply to only two to three hours per day, despite households facing higher monthly fixed charges from the government.
Meanwhile, the Petroleum Division is moving ahead with a proposal to impose a captive gas levy on private-sector distributors like UGDCL, in order to maintain a level playing field with state-run suppliers.
