New Gas at Rs3,900/mmBtu Gets Approval

Islamabad, August 18, 2025, 04:29 PM PKT — The government is poised for a radical shift, planning to approve new gas connections at imported liquefied natural gas (LNG) rates, skyrocketing to Rs3,900 per mmBtu—nearly four times the previous fee, as sources confirm, with the Petroleum Division submitting a summary to the federal cabinet for approval, aiming for 120,000 connections in the first year. Priority targets 250,000 applicants with prior demand notices or urgent fees, stalled by a moratorium, requiring affidavits to forgo past claims or fee hike lawsuits, with connection fees set at Rs40,000–Rs50,000, billed at notified LNG prices.

With 3.5 million pending applications, Sui Northern Gas Pipeline Limited (SNGPL) limits domestic supply to 6-9 hours daily amid winter shortages, driving this move to resolve a gas network glut jeopardizing pipeline integrity and international commitments. LNG-based gas, 35-40% cheaper than liquefied petroleum gas (LPG) at Rs5,300 per mmBtu, benefits lower-income consumers, managing surplus LNG from declining domestic demand and underused power projects, though domestic gas fields producing over 300 mmcfd face partial closures, incurring weekly losses and hindering exploration. Rising LNG imports strain foreign exchange and circular debt. The 120,000-connection rollout may grow, balancing LNG surplus while offering revenue boosts for gas companies and easing supply constraints. Web context on energy policy reveals persistent crises, while posts found on X reflect mixed reactions—some hail access, others dread costs. Critically, the narrative of “supply solution” may mask financial burdens—web data points to debt escalation, and X sentiment suggests distrust in long-term stability, pointing to potential pitfalls.