Press release UGDC Advocates for Long-Term LNG Allocation and Pipeline Access to Empower Pakistan’s CNG Sector

UGDC Advocates for Long-Term LNG Allocation and Pipeline Access to Empower Pakistan’s CNG Sector

Islamabad, January 26, 2021 — Universal Gas Distribution Company (Pvt) Limited (UGDC) has formally proposed to the Government of Pakistan the allocation of long-term liquefied natural gas (LNG) supply and pipeline capacity. This strategic initiative aims to enable private sector participation in LNG imports, ensuring consistent and affordable energy supply for the compressed natural gas (CNG) sector.

Established in 2016 following the Economic Coordination Committee's (ECC) approval, UGDC was created to facilitate LNG imports for the CNG sector, assuming associated financial risks. Despite the establishment of third-party access (TPA) rules to allow private entities to import and market LNG, UGDC has faced challenges in securing long-term access to regasification and pipeline infrastructure.​

UGDC's CEO, Ghayas Paracha, emphasized the necessity of long-term allocations to attract viable LNG suppliers and maintain competitive pricing. He highlighted that the CNG sector in Punjab and Sindh currently consumes approximately 150 million cubic feet per day (MMcfd) of re-gasified LNG through existing terminals and pipelines, indicating no immediate need for additional infrastructure. However, without assured long-term access, the sector remains vulnerable to supply inconsistencies and price volatility

The company has requested that Pakistan LNG Limited (PLL) and Sui Southern Gas Company (SSGC) grant regasification services to UGDC on a long-term basis—preferably until the commissioning of private LNG terminals or for a minimum of three years. This access would empower UGDC to engage in both spot and long-term contracts with LNG producers, ensuring a stable and cost-effective supply chain

UGDC asserts that enabling private sector imports will not only alleviate the government's financial burden associated with LNG procurement but also foster a more competitive energy market. By maintaining a price difference of at least 30% compared to petrol, the CNG sector can offer consumers an affordable alternative, contributing to energy diversification and economic resilience.​

The company urges the government to support this initiative, recognizing the CNG sector's consistent demand and its potential to operate independently without relying on subsidized gas supplies.

For media inquiries, please contact:

Universal Gas Distribution Company
Email: media@ugdc.com
Phone: +92 51 111 888 432

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Universal Gas Distribution Company (UGDC) is Pakistan’s first private limited gas distribution company, engaged in the sale, purchase, import, and distribution of gas to commercial and industrial customers nationwide.

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