LAHORE: The Sui Northern Gas Pipelines Limited (SNGPL) has asked the Oil & Gas Regulatory Authority (Ogra) to allow it to spend Rs46.525 billion for execution of several development schemes, including 300,000 new gas connections to domestic consumers during the ongoing fiscal year (FY22) ending on June 30, 2022.

The SNGPL has also sought permission for executing two mega projects worth Rs2.946bn on 100 per cent cost sharing basis during FY22, Dawn has learnt.

“In the company’s estimated revenue requirement (ERR), it was planned to provide 1.2 million new connections during the FY22. However, later, through the Review of Estimated Revenue Requirement (RERR 2021-22), it was decided to at least provide new connections to the consumers, who have already paid requisite fees (including urgent cases). Those who have already paid fees are approximately 275,000,” an official source explained while talking to Dawn on Saturday.

300,000 new connections are part of the planned schemes

According to a document made available to Dawn, the company plans to lay pipelines for the provision of Regasified Liquefied Natural Gas (RLNG) to industries, housing schemes, colonies and other major consumers. The cost to be incurred on these schemes has been estimated as Rs2.400bn that would be exclusively provided by the private sector (sponsors/owners of the projects). Similarly, the company would also lay a pipeline network for the provision of 10mmcfd RLNG to Bhalwal Industrial City (Special Economic Zone). Rs546m to be incurred on this scheme would be paid by the respective departments.

The document mentions laying of new pipelines (5,000 kilometers) in various parts of Punjab and Khyber Pakhtunkhwa for Rs19.073bn by the SNGPL with its own expense, laying of pipelines (300 km long) in small streets for Rs767m, 135km long system augmentation for Rs1.201bn, laying and fitting of new pipes for Rs720m, installation of 300,000 new connections for Rs5.235bn, schemes related to system rehabilitation for Rs4.307bn, schemes related to monitoring of UFG (Unaccounted for Gas) losses for Rs3.345bn, carrying out UFG control activities for Rs730m, transportation for Rs200m, augmentation/bifurcation of gas network in Lahore City (Phase-II) for Rs2.363bn, Charsadda-Khazana-Tangi transmission system augmentation (Phase-II) for Rs826m, Compression Overhaul Project (2021-26) for Rs533m and other schemes/activities for Rs7.225bn.

“With the completion of the aforementioned schemes, the SNGPL’s gas pipeline network would be expanded as well as strengthened,” the official said, adding that the backlog of those seeking new gas connections has reached to around 3.5m applications.

He said the company is trying hard to provide new connections at maximum. The backlog continues to increase due to annual addition of a hundreds of thousands of new applicants seeking new gas connections, he added.

Published in Dawn, December 19th, 2021