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Govt directs Sui Southern and Sui Northern to cancel over 3 million pending applications
BeNewz Report
The Government has imposed a permanent ban on issuing new domestic gas connections using locally extracted natural gas. The Petroleum Division, following federal cabinet approval, has formally instructed Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) to implement the new framework immediately.
As part of the directive, both gas companies have been ordered to cancel more than 3 million pending requests for gas connections that were to be serviced with domestic natural gas. This decision comes amid rapid depletion of local gas reserves, rising costs of imported gas, and growing financial stress in the energy sector.
The Petroleum Division has also issued a new framework outlining 9 conditions under which new connections may be provided, but only through imported liquefied natural gas (LNG). The pricing for such connections will be significantly higher, up to 70% more expensive than current domestic gas rates.
Under the new policy, SSGC and SNGPL will be allowed to offer gas connections to only 50% of new applicants each year, and only those willing to pay an “urgent fee”. These urgent applicants will be provided with imported gas-based connections within three months.
Furthermore, households whose gas supply has been disconnected for over a year will only be eligible to reapply for connections based on imported gas, also subject to the higher tariff. This shift is expected to create significant financial pressure on household budgets, especially as winter approaches and energy demand surges.
The decision arrives at a time when gas shortages across the country have intensified, particularly during winter, when even urban areas face long hours of gas unavailability. Pakistan’s domestic gas reserves are reportedly declining at an annual rate of around 9%, forcing the government to increase LNG imports to meet national demand.
Experts have described the move as inevitable. Pakistan’s major natural gas fields are either depleted or nearing exhaustion, while exploration for new reserves has seen limited success. The country is already importing expensive LNG from Qatar and other sources, placing a growing burden on both the public sector and end consumers.
However, the long-term implications for the average citizen are severe. Where households previously benefited from subsidized domestic gas, they will now have to bear the cost of much more expensive imported LNG. Consumer rights groups and opposition parties have voiced concerns, urging the government to invest more aggressively in renewable and alternative energy sources to ease the burden on households.
Both Sui gas companies have begun notifying applicants that their pending requests are canceled and that they must now reapply under the new imported gas policy, should they wish to receive a connection.
Pakistan’s energy crisis continues to deepen, and with mounting challenges in gas, electricity, and petroleum supply chains, the government faces the complex task of balancing limited resources with public needs. The ban on new local gas connections marks a historic policy shift that will shape the future direction of energy management in the country.
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