CNG stations get boost as UDC launched

Company, which has licence to import and sell LNG, will supply gas

ISLAMABAD: The first company to have acquired a LNG import and sale licence was launched here on Wednesday. The licence, acquired from the Oil and Gas Regulatory Authority (OGRA), would allow the company to feed gas supplies to CNG stations.

Addressing the launching ceremony of Universal Distribution Company (Private) Limited, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said that other private companies should come forward and sign up for similar licencing agreements as it would foster a competitive atmosphere.

He said LNG was cheaper than any other fuel and it would end reliance of the CNG sector from the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).

When the present government came into power, it faced prospects of worsening power outages and dwindling gas supplies. Despite setbacks at setting up Iran-Pakistan Pipeline, it managed to acquire LNG from Qatargas and Gunvor, said the petroleum minister.

The minister said that the government had initiated different gas related projects worth Rs800 billion, including setting up of LNG terminals and gas pipelines to meet energy needs of the country.

“Pakistan will have surplus power due to effective policies of the present government by 2018,” he said.

With the import of LNG, he said Pakistan was able to fulfil needs of the fertiliser sector. “Previously, Pakistan was importing 1 million ton of fertiliser, but now it has 1.5 million tons of surplus.”

Published in The Express Tribune, May 27^th, 2016.

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