Importing LNG: CNG association, SNGPL finalise modalities

APCNGA looking forward to becoming competitive again

ISLAMABAD: All Pakistan Compressed Natural Gas Association (APCNGA) has finalised the modalities with Sui Northern Gas Pipelines Limited (SNGPL) to import Liquefied Natural Gas (LNG) to provide cheap and environment-friendly fuel to motorists.

“Although the government has allowed the association to import LNG, we plan to get it through SNGPL, for which almost all modalities have been finalised with the company,” APCNGA Chairman Ghiyas Abdullah Paracha told APP.

He said 1,300 CNG stations operating in Punjab had so far shown their willingness to get LNG through SNGPL’s distribution system and expressed confidence that the CNG sector would achieve “complete revival”. The chairman was of the view that there should be an effective mechanism to pass on maximum benefits to consumers of the recently signed deal with Qatar, in which the government succeeded to import LNG at competitive rates.

With regard to the proposed deal between APCNGA and SNGPL, Paracha said “the LNG price for CNG sector should be market-oriented to run the sector effectively and on a long-term basis.”

APCNGA, Paracha said, had negotiated with SNGPL as per Prime Minister’s instruction that the private sector should also support LNG import, and promote the trend in industrial sector for creating an atmosphere of competitiveness.

He said the purpose behind selling the CNG in litres was to benchmark it against petrol. But, he said, efforts would be made to end the prevailing CNG price disparity in provinces and bring it to Rs47 from Rs53 per litre. 

Published in The Express Tribune, February 18^th,  2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.