ISLAMABAD: The private sector has urged the government to allocate surplus indigenous gas to private shippers, arguing that continued curtailment in favour of imported LNG is damaging both producers and consumers.
Industry players note that reluctance to lift LNG cargoes has created a market glut, forcing several cargo diversions. Meanwhile, local gas supplies have been curtailed by 300–400 mmcfd, causing losses estimated at Rs12 billion for exploration companies. Although the government earlier raised third-party allocation from 10% to 35%, the policy has yet to be implemented, frustrating private shippers.
Exploration firms warn that production cuts damage wells and worsen circular debt, while consumers face severe shortages despite so-called “surplus” gas. Private shipper UGDC stressed that channeling indigenous gas to private buyers would spur economic activity, stabilise tariffs, and optimise network use.
The sector has also rejected SNGPL’s demand for higher transportation tariffs, calling instead for efficiency audits, tariff restructuring, a fixed 10-year framework, and stricter application of the UFG benchmark to ensure transparency.
Story by Zafar Bhutta
