Minister for petroleum and natural resources Shahid Khaqan Abbasi addressing the All Pakistan CNG Association in Karachi. PHOTO: APP
Following the footsteps of the textile industry that pushed for gas availability throughout the week, the All Pakistan Compressed Natural Gas Association (APCNGA) also managed to get approval for the provision of Compressed National Gas (CNG) in Punjab for six hours a day but throughout the week.
All CNG stations in Punjab will be open from 10am to 4pm Monday through Saturday and from 6am to midnight on Sunday.
“The government is committed to protect investments in the CNG sector, which unfortunately is in a crisis due to bad policies of the previous governments,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.
“From the April 1, CNG stations in Punjab will be provided gas six hours per day and for 18 hours on Sundays,” said Abbasi.
Abbasi, who was invited by the APCNGA for an announcement for the revival of the CNG sector, further said that this formula is being implemented on a trial basis and if positive results are observed then the formula will be implemented permanently.
CNG sector of Pakistan, whose infrastructural investments are around Rs450 billion with Rs160 billion in CNG kits, are the worst victims of the energy crisis. In Punjab, CNG stations, which have just reopened after a winter break of around 3 months, will be the major beneficiary of this decision as other provinces were being provided with CNG throughout the winter season.
The sector, which was once known as the best profit-making venture, is now losing its charm due to gas shortages. Out of a total of 2,300 CNG stations in Punjab, about 200 have permanently been shut down and the sites are now used for other commercial purposes. Another 100 stations are close to shutting down.
Abbasi informed that if gas is provided to all Independent Power Producers (IPP) then the power shortfall will immediately reduce by half, but other sectors including CNG have to be accommodated as well.
“We spend most of our time in balancing the gas management plan and are hopeful that the first LNG terminal will be operational before year end,” said Abbasi, adding that only new gas exploration can yield long-term sustainability.
“The issue for the CNG sector is the price,” said APCNGA Supreme Council Chairman Ghayas Paracha, adding that the sector is purchasing gas at Rs656 per million British thermal units –higher than any other industry.
Paracha further said that APCNGA will accept the tariff hike for the sector as long as continuous gas supply is ensured. “We know uninterrupted gas supply to the CNG sector is impossible but we will work with the concerned departments to achieve this target.”
Published in The Express Tribune, March 30th, 2014.
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My dear Arsie, as per the 18th amendment, agreed by all provinces, the province which produces a natural resource has the first right to its use. Once its needs are met then can the said resource be given out. You might be surprised to learn that Sindh produces 70% of the total natural gas of the country yet get to use only 36% of it. On the other hand, Punjab produces 6% yet gets 45%. KP, Sindh and Baluchistan are self sufficient in natural gas, hence they were provided gas in winter, while Punjab should had gone through gas load shedding but was provided some gas during this time. But in any case, providing gas to be wasted in transport is a decision which simply defies logic.
Country's 70% of GAS comes directly from SINDH. Yes, from Sindh and hardly 5% or less is GAS production from Punjab, but what a luck of being from Punjab in this federation, Punjab gets No GAS loadshedding, but main producers of GAS, Sindh and Balochistan will face load-shedding. Is this Justice? If such is trend, then what else one can say, Exploitation of resources of smaller provinces. Name any natural resource, it is produced in smaller provinces, but as part of federation, Punjab can use our resources, we will be happy to help our brothers, but first right on natural resources MUST belong to the province which produces them. Only Justice and fairplay can save federation, monopoly of one province wont help in nation building. With best wishes from Sindh.
What a smart move people usually don't work during the regular business hours now you going them another excuse from work to "boss time off for filling the CNG" productivity gayee tale lainay
CNG for transportation purpose should be banned altogether as it is a waste of a resource that can be much more productive if used for purposes such as industry.