By Commerce Reporter
LAHORE: CEO of Sui Northern Gas Pipelines Limited (SNGPL) Aamir Tufail has said that the gas-related issues of industrialists are being resolved on a priority basis. Pending applications for new industrial gas connections and overbilling complaints are being addressed swiftly while a focal person will be appointed to ensure timely resolution of complaints.
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He expressed these views while speaking at the Lahore Chamber of Commerce and Industry. LCCI Acting President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry also spoke on the occasion.
Executive Committee Members Rana Muhammad Nisar, Ahtesham-ul-Haq, Rana Shouban Akhtar, Imran Saleemi, Muhammad Muneeb Munnoo, Aamna Randhawa, Aamir Ali, Waqas Aslam, Irfan Qureshi and former Executive Committee Member Arshad Chaudhry were also present.
Aamir Tufail said that where industries or industrial areas require additional gas, dedicated pipelines will be laid upon their request. He said that domestic consumers are being supplied gas at a loss with around 40% recoveries which is one of the reasons for gas load shedding and the 3 million new connections pending applications pending.
He also admitted that gas for industries is expensive and reducing rates is beyond SNGPL’s authority. However, industries can be facilitated through gas blending. He said that industry plays a vital role in national economic growth and its development is equally important for SNGPL, as industrial growth leads to higher gas demand.
LCCI Acting President Engineer Khalid Usman said that gas is the backbone of Pakistan’s industrial sector. He said that gas reserves are depleting over time, which has created various challenges for industrialists across the country, including Lahore. He said that gas comprises about 29% of Pakistan’s energy mix. Promoting alternative energy sources could allow gas to be diverted from power generation to industrial use.
Engineer Khalid Usman said that SNGPL’s gas losses were 5.15% in 2022–23, which were reduced to 4.93% in 2023–24. He said further improvement is possible. He raised concerns that gas pressure is extremely low in many industrial areas, which severely affects the production process, resulting in significant production losses and financial damage to units.
He said that the restriction on new domestic gas connections is harming SNGPL itself. LCCI members are also facing unexpected gas shutdowns, disrupting factory schedules and preventing timely fulfillment of export orders. This undermines foreign buyers’ confidence. Due to these reasons, industries are relocating and many have ceased manufacturing operations altogether.
Engineer Khalid Usman said that gas tariffs in Pakistan are very high, causing problems for the engineering and production sectors. Recently, RLNG prices have increased by around 4.9%, further escalating industrial production costs. He said reducing prices is essential.
LCCI Vice President Shahid Nazir Chaudhry added that industrialists complain of long delays in the approval of their new gas connection applications. Moreover, SNGPL demands hefty amounts under the security deposit and overbilling remains a serious concern. Permanent solutions to these issues are needed.
LCCI Acting President proposed that dedicated gas lines should be allocated for industrial zones to maintain stable pressure. Export-based industries, in particular, should be provided gas at discounted rates so they can remain competitive in the global market, thereby helping reduce the national trade deficit.
He further suggested setting a clear and short timeline for approval of new industrial connections and ensuring its strict implementation. Overbilling should be permanently resolved by digitizing the billing system and an effective help desk should be established for quick redressal of complaints. He also suggested appointment of focal persons.
