Daily Times

ISLAMABAD: All Pakistan Compressed Natural Gas Association (APCNGA) has high hopes for the revival of the CNG sector, which was badly affected by the gas shortage in the recent years. It believes that the increased import of Liquified Natural Gas (LNG) will help facilitate the sector.

APCNGA is finalising modalities with Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to effectively utilise their network to supply its own imported LNG to CNG stations, the association leader, Ghiyas Abdullah Paracha informed the media sources on Thursday.

Paracha, who also heads the Universal Gas Distribution Company (Pvt.) Limited–the first-ever company to have secured LNG sales and marketing licence from the Oil and Gas Regulatory Authority (OGRA), in order to feed the CNG outlets– thanked the Ministry of Petroleum and Natural Resources for making concerted efforts towards the revitalization of the sector. He also underlined the need to set up more LNG terminals and improve the supply system across the country so that the common man can reap maximum benefits of the cheaper fuel.

Presently, he admitted that the CNG sector was not attracting many motorists as they are still uncertain about its future. However, he also expressed his confidence in the “future, (which) will (belong to) the cheap and environment-friendly fuel, almost 30 percent cheaper than the petrol at the current rates.” He said that although the CNG stations were operating round-the-clock in a week, the improved LNG supply would gradually improve the number of CNG users. APCNGA, he noted, had so far signed agreements with 1,351 CNG stations to attain LNG through the gas-companies-distribution system and was very confident that the CNG sector would soon achieve a “complete revival” due to the ongoing concerted efforts. “CNG stations are consuming 100 mm CFD gas per day and it will be increased to 250 mm CFD per day level soon,” he added.

Initially, a senior official of the Petroleum Ministry had briefed the media sources on the steps taken by the government to encourage the use of CNG as an alternative fuel to control the ongoing environmental degradation, to reduce the foreign exchange expenditure incurred by the imports of liquid fuel and to generate employment.

He added that Pakistan had previously become the world leading CNG user country with more than three million NGVs (Natural Gas Vehicles) plying on the roads. Currently, he believed, more than 3,416 CNG stations are still operational in the country, and fulfilling the fuel needs of the NGVs.

On February 7, 2008, he said, the government had imposed a ban on the establishment of new stations, keeping in view the mushroom growth of CNG stations as well as the fast depleting natural gas reserves in the country. The official said that the CNG stations, which had shut down in Punjab due to the gas supply constraints, are expected to start their operations soon. The fact that the government has already initiated different gas projects worth Rs. 800 billion, which include setting up various LNG terminals and gas pipelines, would significantly help the sector meet the energy needs of the country.