The federal government has permanently banned new residential gas connections using local natural gas and canceled around three million pending applications to address the worsening domestic gas shortage. The Petroleum Division has issued a nine-point policy framework, recently approved by the Federal Cabinet, directing Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to implement these changes. This decision aims to manage limited local gas reserves more effectively while ensuring future supply stability through imported liquefied natural gas (LNG).
Under the new framework, local natural gas will no longer be allocated for new household connections, marking a major shift in energy distribution policy. Both gas utility companies have been instructed to clear the backlog by rejecting all pending requests. Furthermore, moving forward, only imported LNG connections will be offered to households under specific conditions outlined by the government. This step is expected to encourage efficient use of gas resources and reduce the mounting pressure on local reserves.
The updated guidelines also introduce a system where SSGC and SNGPL can only provide connections to 50 percent of applicants each year. However, these applicants must pay an urgent processing fee to qualify for priority service. By doing so, they will receive imported LNG connections within three months. This measure aims to streamline application processing while ensuring that only serious applicants secure the limited available capacity.
In addition, the policy offers relief to households whose gas connections were disconnected for over a year. Such consumers will now be eligible to apply for imported LNG connections under the new rules. Nevertheless, the tariff for imported gas will be approximately 70 percent higher than that of local natural gas. This pricing difference reflects the higher costs of importing LNG and encourages users to adopt energy-saving practices.
This decisive move highlights the government’s strategy to address growing energy challenges amid declining domestic gas production and rising demand. By focusing on imported LNG and setting strict conditions, the administration aims to stabilize residential supply and prevent future shortages. Energy experts believe this policy could also promote investment in alternative energy solutions as households and businesses seek more affordable and sustainable options in the long term.
Overall, the permanent ban on local gas connections marks a significant policy shift in Pakistan’s energy sector. With the new framework in place, the government hopes to balance rising energy needs with responsible resource management while transitioning toward a more import-based gas supply system.