Pakistan Gas Connections Resume – Cabinet Approval
- The Federal Cabinet of Pakistan has approved the resumption of new gas connections nationwide, addressing a long-standing public demand.
- In 2021, the Government of Pakistan imposed a ban on new gas connections due to concerns about declining domestic gas reserves and increasing demand.
- The Oil and Gas Regulatory Authority (OGRA) faced pressure to reconsider the ban, but the government maintained the restriction until now.
Pakistan Resumes New gas Connections After 2021 Ban Lifted
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The Federal Cabinet of Pakistan has approved the resumption of new gas connections nationwide, addressing a long-standing public demand. The decision, announced by Petroleum Minister Ali Pervaiz Malik, ends a ban imposed in 2021.
Background: The 2021 Ban and Its Impact
In 2021, the Government of Pakistan imposed a ban on new gas connections due to concerns about declining domestic gas reserves and increasing demand. This decision left many residents, notably in newly developed housing areas, reliant on Liquefied Petroleum Gas (LPG) cylinders and other choice fuels. The ban sparked widespread public dissatisfaction, as LPG is significantly more expensive than natural gas.
The Oil and Gas Regulatory Authority (OGRA) faced pressure to reconsider the ban, but the government maintained the restriction until now.
Key Decisions Announced by the Cabinet
- Restoration of New Domestic Connections: The primary decision is the lifting of the ban on new domestic gas connections.
- Focus on New Housing Areas: Priority will be given to providing gas connections to newly developed housing areas where residents have been disproportionately affected.
- RLNG Option: Existing applicants will have the option to convert their requests to connections based on Re-gasified liquefied Natural Gas (RLNG) by paying a prescribed security fee to OGRA.
- Procurement Completed: Both Sui companies (Sui Northern Gas Pipelines Limited and Sui Southern Gas Company) have completed the procurement of necessary meters and pipelines.
- Exploration Bids: One bidding round for domestic gas exploration has been completed, and another is nearing completion.
RLNG vs. LPG vs. Natural Gas: A Cost Comparison
While RLNG is more expensive than traditional domestic natural gas, it offers a meaningful cost advantage over LPG. Minister Malik stated that RLNG will be approximately 30-35% cheaper than LPG, providing substantial relief to households.
| Fuel Type | Approximate cost (per unit – May 2024 estimates) | Notes |
|---|---|---|
| Domestic Natural Gas | PKR 200-250/MMBTU | Price varies by region and slab. |
| RLNG | PKR 400-500/MMBTU | Imported and subject to international market fluctuations. |
| LPG | PKR 1200-1500/kg | Highly volatile price,dependent on global oil prices. |
Note: Prices are approximate and subject to change based on market conditions and government policies. MMBTU = Million British Thermal Units.