Karachi: Sui Northern Gas Pipelines Limited (SNGPL) announced the formation of a wholly owned subsidiary, following approval from its Board of Directors during their 638th meeting on June 25, 2025. This new entity will have an authorized share capital of Rs. 1 billion and an initial paid-up capital of Rs. 50 million, marking a significant expansion move for the company.

The decision comes as part of SNGPL's strategic efforts to broaden its operational framework and enhance its market presence. The company clarified that any expenses incurred during the registration process will be charged to the new subsidiary and subsequently recovered from it once operational. According to information available from the Pakistan Stock Exchange (PSX), this development aligns with the company's growth objectives.

Stakeholders and TRE Certificate Holders of the Exchange have been informed of this advancement, emphasizing SNGPL's intent to leverage its resources in establishing the subsidiary efficiently. The initiative reflects a moderate move in strategic asset allocation, aimed at ensuring sustainable growth and profitability for the company in the foreseeable future.