SNGPL Postpones 35mmcfd Allocation to UGDCL

Sui Northern Gas Pipelines Limited (SNGPL) has deferred the allocation of 35mmcfd pipeline capacity to Universal Gas Distribution Company Ltd (UGDCL), reversing its initial approval just weeks prior, according to Dawn.

The decision emerged from a board of directors (BoD) meeting in early September, driven by internal discussions and guidance from the Ministry of Energy.

Initially, on August 15, 2025, SNGPL’s board greenlit the allocation based on management recommendations and ministry advice, designating 25mmcfd on a firm basis through 2033 and 10mmcfd on an interruptible basis for six months. However, following further deliberation, the board opted to postpone the implementation.

This reversal coincides with SNGPL grappling with persistent natural gas management challenges and a surplus of liquefied natural gas (LNG). Officials disclosed that the company has quietly initiated gas rationing ahead of winter, aiming to curb unaccounted-for gas (UFG) losses.

The rationing restricts gas supply to two to three hours daily, despite households facing escalated monthly fixed charges imposed by the government.

Concurrently, the Petroleum Division is advancing a proposal to impose a captive gas levy on private-sector distributors like UGDCL, aiming to ensure a level playing field with state-run suppliers.