The Oil and Gas Regulatory Authority (Ogra) has approved about Rs6.1 billion in upfront funding for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to begin providing new RLNG-based domestic gas connections in the current financial year.
According to Ogra’s decision, SNGPL had sought a total of Rs6.5 billion for 300,000 new RLNG domestic connections following the government’s move to lift the longstanding moratorium. The request included Rs262 million for distribution-main service lines and Rs393 million for measuring and regulating systems for an initial 30,000 consumers.
The authority, however, approved Rs4.3 billion upfront for SNGPL against the higher projection, allowing the rollout to proceed in phases.
SSGC, which requested Rs1.8 billion for expanding RLNG supply to domestic customers, received full approval for its plan. The company aims to issue roughly 50,000 new connections in FY26, in line with government directives.
The approvals come as policymakers push gas utilities to rely more on RLNG for residential supply, a shift Ogra has previously said requires careful evaluation to ensure system stability and cost-effectiveness.
