TRADE & ECONOMY

Govt to Lift Ban on Domestic Gas Connections, Imported Gas to Be Supplied

Govt decides to lift 5-year ban on new domestic gas connections. Imported gas to be offered with fees up to Rs 41,000. Final approval pending cabinet nod.
2025-07-31
Govt to Lift Ban on Domestic Gas Connections, Imported Gas to Be Supplied

The federal government has decided to lift the five-year ban on new domestic gas connections, sources confirmed on Wednesday.

According to Petroleum Division officials, a summary has been forwarded to the federal cabinet recommending the resumption of new connections. However, these connections will be based on imported liquefied natural gas (LNG), not local natural gas.

The move comes after the ban on new connections was imposed in 2019 due to a decline in indigenous gas supply. Officials say the new imported gas connections will cost significantly more, with the fee expected to be around Rs 41,000, several times higher than the previous charges for natural gas.

The final decision will be subject to the federal cabinet's approval.

Sources indicate that the decision was prompted by improved supply conditions. Gas availability in the system has increased due to reduced demand across sectors and better management. As a result, five LNG cargoes have already been delayed due to excess availability.

Officials added that the Petroleum Division was earlier instructed to complete the groundwork for issuing new gas connections, assess consumer demand, and ensure a robust plan for domestic and commercial sectors.

Moreover, gas losses by Sui companies have reportedly been reduced, creating room in the system to resume services for new consumers.

Once approved, the policy will mark the first time since 2019 that new domestic users will be able to apply for gas connections, albeit at a higher cost and using imported LNG.