SNGPL LPG Cylinder Supply Project

Sui Northern Gas Pipelines Limited

Sui Northern Gas Pipelines Limited LPG Cylinder Supply Project is an energy supply initiative approved to address low gas pressure and supply shortages faced by tail end domestic consumers during winter months. The project was developed in response to high international LNG prices and limited availability of spot LNG purchases, which constrained the ability to meet winter gas demand through conventional pipeline supply. Under the guidance of the Ministry of Energy Petroleum Division, SNGPL explored alternative options to ensure uninterrupted energy access for consumers.

The Board of Directors of SNGPL approved the project on September 28, 2022, authorizing the distribution of 100,000 LPG cylinders to domestic consumers. The estimated initial investment for the project is up to PKR 1,200 million. SNGPL serves approximately 7,000,000 consumers across Punjab and Khyber Pakhtunkhwa, the majority of whom are domestic users vulnerable to seasonal gas pressure drops. The initiative aims to provide a reliable supplementary fuel source during peak winter demand periods.

The project also aligns with national energy supply dynamics, where approximately 61% of LPG demand is met through local production while the remaining share is imported. LPG accounts for about 1.3% of Pakistan’s primary energy supply. The current LPG market size is approximately 1,292,539 metric tons per annum, reflecting a 12.46% increase compared to 1,149,352 metric tons per annum in the previous year. The LPG cylinder supply project is intended as a temporary yet practical solution to mitigate winter gas shortages and support household energy needs.

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BWP TE 029-23

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