1. Introduction
Pakistan's energy sector relies heavily on natural gas as a primary fuel. The rapid growth in demand across domestic, commercial, industrial, fertilizer, and power sectors requires an allocation policy that balances national interest, sustainability, and sector priorities.
2. Existing Gas Demand and Supply Scenario
Available natural gas supplies do not always fully meet aggregate demand. That makes allocation policy, conservation, and structured prioritization essential for stable service and long-term planning.
3. Consumer Mix on the Network
The policy framework distinguishes between domestic and commercial consumers, industrial and process-gas users, power producers, fertilizer plants, and other sectors connected either through the SNGPL/SSGC system or independent networks.
4. Justification and Rationale
Natural gas is treated as a valuable national resource. Allocation decisions are expected to reflect economic return, social impact, strategic need, and the need to maintain supply to higher-priority sectors whenever shortages occur.
5. Priority Order for Gas Allocation
- Domestic and commercial sectors are placed at the highest priority.
- Fertilizer and process-gas industrial sectors follow at the next priority level.
- Power producers are placed after those core sectors.
- CNG and lower-priority sectors are considered later in the merit order.
6. Future Gas Supplies
The policy recognizes the need for future supply planning through domestic development, imported LNG, and other long-term infrastructure strategies as local reserves face pressure.
7. Gas Load Management During Shortages
During constrained periods, curtailment is expected to follow the reverse of the established priority order so that more critical sectors remain protected as far as possible.
8. Guidelines for New Gas Connections
- New connections are evaluated in the context of system availability and policy rules.
- Gas-scarce areas may face tighter scrutiny for expansion requests.
- Large new consumers may require stronger technical and supply-availability justification.
9. Conservation and Efficiency Measures
The policy also supports conservation, consumer awareness, efficient usage, and improved metering practices to reduce wastage and strengthen long-term energy security.
10. Tariff Rationalization and Network Expansion
Network expansion and tariff design are intended to reflect both cost realities and public-interest considerations, especially in underserved areas and higher-impact development zones.
11. Regulatory Oversight and Review
Regulatory authorities are expected to monitor implementation, compliance, and ongoing review of the policy so that it can adapt to supply conditions, infrastructure constraints, and changing national priorities.