Business

CNG sector expects strong rebound

Plans to import advanced CNG kits for 660cc to 3,000cc vehicles

APP August 23, 2017

LNG Terminal. PHOTO: REUTERS

ISLAMABAD: The All Pakistan Compressed Natural Gas Association (APCNGA) expressed confidence on Tuesday in a strong revival of the CNG sector on the back of increased liquefied natural gas (LNG) imports in the next two years.

“Around 3,200 CNG stations were operating in 2012 when natural gas supply to the outlets was stopped due to scarcity of the commodity,” the association’s leader Ghiyas Abdullah Paracha said.

Govt to provide guarantees for LNG pipeline financing

“In 2016, however, around 2,300 stations restarted operations courtesy of increased LNG availability,” he said while emphasising the importance of LNG as a substitute for CNG. He pointed out that several private sector investors were taking keen interest in setting up LNG terminals and hoped that LNG demand would expand to one billion cubic feet per day.

Currently, Pakistan State Oil is importing 600 million cubic feet of LNG per day (mmcfd) with the volume expected to double soon. Paracha said CNG stations were operating round the clock throughout the week and getting uninterrupted gas supplies.

“The association is planning to import latest CNG kits and cylinders,” he stated, adding the Oil and Gas Regulatory Authority (Ogra) had granted approval for the scheme.

The new kits are designed for 660cc to 3,000cc vehicles.

“Two foreign companies from Italy and Singapore have agreed to provide EFI compatible CNG kits and new lightweight cylinders in Pakistan,” he added.

Pakistan shelves $2b LNG project

“The new equipment will be cost-effective compared to skyrocketing vehicle prices,” he emphasised, adding prices of new cylinders and kits would be determined after their import. “The future belongs to inexpensive and environment-friendly fuel sources, which can be 30% cheaper than petrol at the existing rates,” he claimed, adding CNG stations were currently consuming 100 mmcfd of gas, which would soon be increased to 250 mmcfd.

Published in The Express Tribune, August 23^rd, 2017.

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

COMMENTS (1)

Xak | 6 years ago | Reply It is alarming how rosy pictures are painted without any preset policy framework. Has anybody even tried to think how our future generation are going to pay off the dollars that are needed right now to pay off the LNG sellers? Has anybody thought of conserving energy on our roads, define some metrics regarding travel fuel consumption efficiency? I think not! Not at all! We burn millions of dollars worth of fuel stuck in traffic jams in Karachi alone. Not to mention the man hours that are wasted and psychological exertion it causes to people.

Replying to X