CNG sector: PM for allocating dormant gas fields

Agrees to duty-free import of machinery for producing Hydrogen CNG.


Express January 18, 2012

ISLAMABAD: Prime Minister Yousaf Raza Gilani has directed the Ministry of Petroleum and Natural Resources to dedicate dormant gas fields and flare gas to the compressed natural gas (CNG) industry and import machinery for production of Hydrogen CNG at zero duty to meet demand of vehicles.

The prime minister gave the directives in a meeting with a delegation of the All Pakistan CNG Association, led by Ghayas Abdullah Paracha and Syed Fayaz Gilani, here on Wednesday. Petroleum and Natural Resources Minister Dr Asim Hussain was also present.

Sources told The Express Tribune that CNG dealers blamed the supply of gas to general industry for severe loadshedding and called it violation of an agreement. The industry had a gas supply agreement for nine months in a year, but gas utilities were providing the fuel for more than the agreed period, they said.

According to a statement issued by the CNG association, the dealers gave a briefing to the prime minister about gas loadshedding, pricing and tax issues. They also discussed the gas-fitted vehicle checking campaign, a plan to resolve the CNG crisis and recommendations for introducing Hydrogen CNG. The prime minister agreed to implement the decisions taken earlier this month which included withdrawal of FIRs against CNG industry leaders, decrease in gas outages, reduction in tax and levy of no further taxes.

The prime minister directed that shale gas, dormant gas fields and flare gas – excess natural gas produced during drilling and extraction of oil – should be dedicated to the CNG industry and called for import of machinery for producing Hydrogen CNG – a mixture of hydrogen and CNG – at zero duty to meet 20% demand of CNG vehicles.

Published in The Express Tribune, January 19th, 2012.

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