SNGPL Clears Way for Private Gas Firm

In a landmark shift for Pakistan’s energy sector, Sui Northern Gas Pipelines Limited (SNGPL) has approved pipeline access for Universal Gas Distribution Company (UGDC), the country’s first private gas marketing firm. SNGPL has allocated 50 million cubic feet per day (mmcfd) capacity—25mmcfd on a firm basis until 2033 and 10mmcfd on an interruptible basis for six months. UGDC will now supply natural gas to high-end consumers previously served by SNGPL.

The move follows a year-long resistance from SNGPL, which had earlier deferred the decision despite board approval. UGDC must deposit Rs800 million upfront and pay Rs1 billion monthly for transportation and unaccounted-for gas losses.

Despite sourcing the most expensive gas in Pakistan, UGDC plans to offer competitive rates through minimal profit margins. The Petroleum Division is also considering a captive gas levy to ensure fair competition between public and private distributors. This development marks a significant step toward liberalizing Pakistan’s gas market, potentially opening doors for more private-sector participation.

The decision reflects shifting dynamics in energy governance, with regulatory bodies now facilitating private enterprise in a traditionally state-dominated domain.