New gas connection Security Fee announced

ISLAMABAD: The federal government has sanctioned the provision of re-gasified liquefied natural gas (RLNG) connections to national consumers and also issued the fee structure.

The Petroleum Division issued a formal notification after the federal cabinet gave the go-ahead, along with standard operating procedures (SOPs) for the new connections, reports added.

The Petroleum Division has sent the cabinet-approved framework to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).

The new policy has a perpetual prohibition on new connections with indigenous natural gas, and also directs the cancellation of about 3 million pending applications for connections.

The RLNG connection framework includes nine conditions. According to this system, SNGPL and SSGC will be permitted to offer RLNG connections to a maximum of 50% of applicants every year, subject to payment of an “urgent fee.” The three-month installations of these accelerated connections will be completed.

But the tariff for imported RLNG connections will be 70 percent more than normal domestic gas prices.

New Gas Connection Security Fee

Under the newly approved policy, the security deposit for an RLNG-based domestic gas connection is fixed at Rs20,000.

Apart from that, service charges will be Rs 1,500 for houses up to 10 marlas and Rs 3,000 for larger houses.

This totals the connection cost to Rs 21,500 for regular houses and Rs 23,000 for bigger ones.

In addition, households whose gas supply has been cut off for one year or more will qualify only for RLNG-based connections.