The Petroleum Division has decided to lift ban on new domestic gas connections, particularly for private housing societies, due to a surplus of imported LNG (Liquefied Natural Gas).
The ban, originally imposed in 2022, is being revisited to address the underutilization of LNG infrastructure and potential strain on foreign exchange reserves. Sui Southern Gas Company (SSGC) has already started accepting applications for new RLNG-based connections in private housing societies, according to Sui Southern Gas Company.
According to ARY News citing sources, a summary proposing the removal of the ban has been submitted by the Petroleum Division. It has been decided that new connections will be provided using imported gas.
The report further said that new domestic consumers will be offered connections based on imported gas, which will be significantly more expensive than conventional natural gas connections. The fee for an imported gas connection is expected to reach up to Rs41,000.
Following approval by the federal cabinet, the issuance of new gas connections will begin. It is worth noting that earlier this month, sources linked to the Petroleum Division claimed the federal government was considering lifting the ban imposed on new gas connections.
The Petroleum Division was directed to complete the necessary groundwork and assess the requirements of new residential and commercial users.
