UGDC seeks foreign investors as Pakistan opens gas market

Pakistan's Universal Gas Distribution Company (UGDC) is seeking foreign investment and partnerships to expand private gas distribution and infrastructure.

The company is representing the country at Gastech 2026 in Bangkok, a four-day energy conference running from September 14 to 17.

What is UGDC seeking at Gastech 2026?

UGDC, which describes itself as Pakistan's first private gas distribution company, is showcasing investment opportunities in the country's gas sector at the Bangkok International Trade and Exhibition Center. It is seeking international partners, including US firms, for distribution networks and related infrastructure as Pakistan's gas market opens to private players.

UGDC Chief Executive Ghiyas Abdullah Paracha said the company was pursuing joint ventures with international energy companies to develop gas distribution infrastructure and improve the reliability and affordability of supplies. "The government has announced a policy to allocate 35% gas to private parties, which is an important step toward the deregulation of gas distribution," Paracha told media at the event.

How is Pakistan's government opening up the gas market?

The government's move to increase the share of gas available to private companies from 10% to 35% is opening opportunities for greater private-sector investment and competition. Pakistan's gas distribution network is currently dominated by two state-owned utilities, Sui Northern Gas Pipelines Ltd. and Sui Southern Gas Company.

Paracha said greater private-sector participation could help reduce gas losses and improve supply reliability. He added that private companies could develop dedicated infrastructure for industrial customers and large residential developments.

What infrastructure plans does UGDC have?

UGDC plans to establish targeted private pipeline networks for high-volume industrial consumers and major residential schemes. Paracha said this could help bypass inefficient legacy infrastructure and reduce unaccounted-for-gas losses across the network.

The company has also pursued short- and long-term LNG import arrangements to address seasonal shortages. It supports the development of underground gas storage facilities that would allow Pakistan to purchase gas when international prices are more favourable.

UGDC has operationalised three dormant gas fields by processing raw gas into pipeline-quality supplies, Paracha said. The company plans to work with international partners to expand gas purification infrastructure and connect stranded reserves to the national grid.

Which international companies has UGDC worked with?

UGDC is seeking additional investment from international energy companies under Pakistan's evolving gas-market framework. This builds on previous engagements with companies including ExxonMobil, QatarEnergy, ConocoPhillips and Trafigura.

"Private-sector participation operates entirely on private capital without government subsidies," Paracha said. He added that private gas infrastructure would generate revenue for the government through pipeline transit tariffs and taxes. He said greater liberalisation of the gas market could lower energy costs for consumers, improve industrial competitiveness and strengthen Pakistan's energy security.

Who else represented Pakistan at Gastech 2026?

Pakistan's Ambassador to Thailand, Sadia Qazi, visited the UGDC booth at Gastech and praised the company for representing Pakistan at the international energy forum. She said the participation marked an important step for Pakistani businesses seeking a stronger presence in global markets.

Qazi added that while natural gas remained a conventional fossil fuel, Pakistan needed to combine gas-sector development with modern technologies, artificial intelligence and lower-carbon solutions. She said this combination would strengthen the country's long-term energy security.