SNGPL wants RLNG contracts with businesses

Lahore: Due to shortage of gas in the system, Sui Northern Gas Pipeline Limited (SNGPL) has expressed its wish to enter into Regasified Liquefied Natural Gas (RLNG) contracts with commercial customers, at least, for the upcoming winter period.

The senior General Manager SNGPL Syed Jawad Naseem speaking to the business community in a session at the Lahore Chamber of Commerce and Industry (LCCI) said that after meeting KPK’s consumption requirements, Punjab only receives about 500 MMCFD, which is not enough for the domestic users.

Naseem also said that signing an LNG contract is a viable option for the industry whereas SNGPL, on the request of LCCI, will put up the extension on the disconnection date of 31st October to the higher authorities.

“RLNG and system gas supplied through the same pipes, the industry will not need to change the equipment after shifting on to the RLNG gas. The department was trying to find out a solution to the problem of difference in production, price and GIDC in Sindh and Punjab. There is no production of gas in Punjab but the state is the highest consumer base in terms of number of users. The global energy crisis spurred by the conflict in Ukraine has already affected global energy supply chain, price hike and took people to the roads around the globe due to price increases”, said Naseem and informed that due to the policies of the government the rupee is stabilizing and it will reflect in the prices of energy as well.

The SGM SNGPL pointed out that the domestic consumers are the top priority in terms of gas supply.

“All the commercial consumers including new housing societies are being shifted to the RLNG for the last 4-5 years. The winters are a challenge and commercial consumers should cooperate in this regard,” he added.

The President LCCI Kashif Anwar during the session said LCCI would convince its members to shift to the RLNG for the upcoming winter period.

“Gas in Punjab is very expensive as compared to Sindh and KPK due to which the production cost here is very high. The government has assured five zero-rated sectors to supply the gas at $9 per MMBTU while the rate for remaining sectors is double. Gas should be provided at a uniform rate throughout the country like electricity and POL,” Anwar said.

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Shahab Omer
Shahab Omer
The writer is a member of the staff and can be reached on [email protected]


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