Uninterrupted gas supply may require tariff increase, says SNGPL

Only 45% of country’s gas demand is met by local production, SNGPL MD tells Senate standing Committee on Petroleum.

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Sui Northern Gas Pipelines Limited (SNGPL) officials hinted an increase in gas prices as they suggested that domestic gas prices may need to be increased if uninterrupted supply and an end to load-shedding are to be ensured, Express News reported.

The remarks were made during a meeting of the Senate Standing Committee on Petroleum, where issues of low gas pressure and persistent outages were discussed in detail.

During the session, SNGPL Managing Director explained that the ongoing load-shedding crisis is largely driven by reliance on imported Liquefied Natural Gas (LNG).

He stated that only 45% of the country's gas demand is currently being met through domestic production, while the remaining 55% is being fulfilled through imports.

Efforts are currently underway to restore supply in Lahore, the MD said, adding that complaints raised by Senator Kamil Ali Agha would be addressed on a personal basis.

The committee was informed that during the month of Ramadan alone, over 25,000 consumer complaints were received regarding gas issues. In the past year, a total of 132,376 complaints about low pressure were logged, with more than 131,000 reportedly resolved.

The SNGPL MD assured lawmakers of continued efforts to improve the complaint response system.

Following the briefing, the Senate committee concluded discussions on public complaints related to gas supply, considering the matter resolved for the time being.

Petroleum Minister Ali Pervaiz Malik also addressed the meeting, acknowledging that the petroleum sector received less attention over the past year due to a heightened focus on the power sector. He noted that local gas consumption has been steadily declining, while imported LNG is now being used even for domestic stoves.

The minister also admitted that policy implementation regarding oil refineries is still pending, though he emphasised that the minerals sector is seeing substantial foreign investment.

Meanwhile, Director General of Minerals briefed the committee on the Reko Diq project, stating that production is expected to begin by 2028. The project has a projected lifespan of 37 years and is estimated to generate a cash flow of $70 billion.