Comeback: With LNG import, CNG sector hopes for revival

Stations that closed down are expected to reopen soon

ISLAMABAD: It appears that the fate of thousands of CNG stations is closely tied to recently signed agreements to haul Liquified Natural Gas (LNG) vessels into Pakistan. Previously closed down due to shortage of gas, the CNG stations are confident that, along with the imported fuel, a robust revival is in the pipeline, according to All Pakistan CNG Association (APCNGA).

APCNGA was finalising modalities with Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas (SSGC) for effectively utilising their network to supply its own imported LNG to CNG stations, the association leader Ghiyas Abdullah Paracha said.

Paracha, who is also heading the Universal Gas Distribution Company (Pvt) Limited - the first-ever company to secure LNG sale and marketing licence from the Oil and Gas Regulatory Authority (OGRA) to feed CNG outlets - thanked the Ministry of Petroleum and Natural Resources for making concerted efforts to reactivate the sector.



He underlined the need for setting up more LNG terminals and improving the supply system across the country to get maximum benefit of the cheaper fuel for the common man. Presently, he admitted that the CNG sector was not attracting motorists as they were still uncertain about its future but expressed the confidence that “future will be of the cheap and environment friendly fuel, which is almost 30% cheaper than the petrol at the current rates”.

“CNG stations are consuming 100 mmcfd gas per day and it will be increased to 250 mmcfd per day level soon,” he added.

Originally, the government encouraged CNG as an alternative fuel as it was environment friendly and helped unburden country’s fuel import expenditure; But the rapid rate at which the stations grew, combined with fast depleting natural gas reserves, resulted in a ban on new stations in 2008.

The official said it was expected that the CNG stations, which were closed in Punjab due to the gas supply constraints, would be operational again once Rs800 billion gas projects were initiated.

Published in The Express Tribune, June 17^th, 2016.

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