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HomeNewsNational NewsIs government lifting ban on new gas connections?

Is government lifting ban on new gas connections?

Petroleum Division Minister, Dr. Musadik Masood Malik, clarified on Thursday that the government has no intention of lifting the current ban on new domestic gas connections, citing a shortage of indigenous gas supplies.

Speaking in the National Assembly, he explained that the moratorium was necessary due to the ongoing depletion of natural gas resources, which are decreasing by 7-8% annually.

While the moratorium remains in place for traditional gas connections, Malik announced that new housing schemes could now apply for liquefied natural gas (LNG)-based connections. This move is intended to accommodate residential areas while preserving the country’s diminishing natural gas supply.

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Globally, gas is commonly supplied to households through LPG cylinders, but Pakistan still relies heavily on gas pipeline distribution. The minister emphasized that Pakistan must consider alternatives, as the demand for gas continues to rise.

In addition, Dr. Malik mentioned that Pakistan State Oil (PSO) has two long-term LNG purchase agreements with Qatar, valid until December 2031. PSO imports around nine LNG cargoes per month, primarily used for power generation, industries, and other sectors.

On the issue of Pakistan International Airlines (PIA), Malik revealed that the national carrier owes PSO Rs. 29.4 billion for fuel supplies. The minister noted that PIA’s privatization process is ongoing, and a mechanism to clear the dues will be determined post-privatization.

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