Sui Northern Gas Pipelines Plans 300,000 LNG Connections in FY25 Amid Domestic Supply Challenges

Sui Northern Gas Pipelines (SNGP) aims to install 300,000 re-gasified liquefied natural gas (RLNG) connections in FY25, followed by 600,000 annually. This initiative addresses declining domestic gas production and fluctuating demand from power sector customers.

Initial demand has shown promise, with 50,000 connections established in the first 1.5-2 months. SNGP highlights that RLNG is 30% cheaper than LPG. Despite challenges, including circular debt affecting shareholder payouts, SNGP is making strategic investments in infrastructure, including a Rs28 billion project to inject gas from the Palak field.

The company's profitability decreased to Rs14.6 billion in FY25, impacted by regulatory changes and interest rates, reflecting the complexities of transitioning from domestic gas to imported LNG. SNGP's expansion into RLNG connections is seen as a vital strategy to adapt to market dynamics.