Switching over: OGRA, stakeholders shoot down CNG-to-LPG idea
LPG more expensive than both CNG and petrol and experts say it is more ‘dangerous’.
ISLAMABAD:
The federal government’s proposed move to shift from Compressed Natural Gas (CNG) to Liquefied Petroleum Gas (LPG) hit a snag when the regulator, Oil and Gas Regulatory Authority (Ogra), strongly opposed it.
Earlier, Minister for Petroleum and Natural Resources Dr Asim Hussain had offered to set up LPG auto filling stations for the CNG industry at existing sites as alternate means of business to safeguard their investment.
His offer, however, was rebuffed by the CNG industry.
Meanwhile, the regulator has also opposed the use of LPG in transport sector, instead of CNG, terming it ‘more dangerous’ and economically ‘unviable.’
Economic viability and safety
LPG is expensive compared to both CNG and petrol.
The present price for LPG is Rs125 per kilogramme (kg), and is expected to rise to Rs134 per kg after a Rs9 per kg expected hike effective January 1, 2012.
The price of CNG, however, is Rs74.30 per kg in Khyber Pakhtunkhwa, Balochistan and the Potohar region, and Rs69.62 per kg in Sindh and Punjab, after the recent price hike.
Compared to a petrol-run vehicle, which costs Rs5.8 per kilometre on average, an LPG-run vehicle costs Rs6.25 per kilometre, according to working by the CNG association.
Experts also say that since LPG does not mix with the air after leakage, it is more dangerous as a fuel source for vehicles.
Ogra chairman Sabir Hussain confirmed that the regulator is not in favour of using LPG in the transport sector, saying it would put people’s lives at greater risk.
He added that LPG as fuel is not an economically viable option for the public either.
Shooting down the idea
When contacted, Chairman All-Pakistan CNG association Ghyias Paracha said they were offered to convert CNG stations into LPG.
“Why should we use LPG which is more epensive compared to petrol?” he said.
He added that the CNG industry has already invested billion of rupees and could not make further investments in setting up LPG stations.
“The influential lobby is involved in LPG business and wants to ruin the CNG industry by replacing it with LPG as fuel in the auto sector,” he added.
Refueling substandard cylinders
An Ogra official said that the regulator, in consultation with the All-Pakistan CNG Association, has decided to impose a ban on refueling CNG in public sector vehicles that use substandard cylinders.
The decision was taken in a recent meeting attended by representatives of Hydrocarbon Development Institute of Pakistan and the explosives department, he added.
He said that CNG stations were allowed to refuel vehicles that have company-fitted cylinders.
“During the last two-day inspection, Sui Northern Gas Pipeline Limited has disconnected gas supply to 13 CNG stations that were violating the decision of not refuelling CNG in vehicles with substandard cylinders,” he said.
“Ogra will continue inspection of CNG stations for strict compliance of safety procedures,” he said, adding that provincial governments had also been asked to take strict actions against illegal cylinder workshops.
Ogra chairman, however, ruled out that the regulator had imposed a ban on refuelling of CNG in public sector vehicles.
Published in The Express Tribune, January 1st, 2012.
The federal government’s proposed move to shift from Compressed Natural Gas (CNG) to Liquefied Petroleum Gas (LPG) hit a snag when the regulator, Oil and Gas Regulatory Authority (Ogra), strongly opposed it.
Earlier, Minister for Petroleum and Natural Resources Dr Asim Hussain had offered to set up LPG auto filling stations for the CNG industry at existing sites as alternate means of business to safeguard their investment.
His offer, however, was rebuffed by the CNG industry.
Meanwhile, the regulator has also opposed the use of LPG in transport sector, instead of CNG, terming it ‘more dangerous’ and economically ‘unviable.’
Economic viability and safety
LPG is expensive compared to both CNG and petrol.
The present price for LPG is Rs125 per kilogramme (kg), and is expected to rise to Rs134 per kg after a Rs9 per kg expected hike effective January 1, 2012.
The price of CNG, however, is Rs74.30 per kg in Khyber Pakhtunkhwa, Balochistan and the Potohar region, and Rs69.62 per kg in Sindh and Punjab, after the recent price hike.
Compared to a petrol-run vehicle, which costs Rs5.8 per kilometre on average, an LPG-run vehicle costs Rs6.25 per kilometre, according to working by the CNG association.
Experts also say that since LPG does not mix with the air after leakage, it is more dangerous as a fuel source for vehicles.
Ogra chairman Sabir Hussain confirmed that the regulator is not in favour of using LPG in the transport sector, saying it would put people’s lives at greater risk.
He added that LPG as fuel is not an economically viable option for the public either.
Shooting down the idea
When contacted, Chairman All-Pakistan CNG association Ghyias Paracha said they were offered to convert CNG stations into LPG.
“Why should we use LPG which is more epensive compared to petrol?” he said.
He added that the CNG industry has already invested billion of rupees and could not make further investments in setting up LPG stations.
“The influential lobby is involved in LPG business and wants to ruin the CNG industry by replacing it with LPG as fuel in the auto sector,” he added.
Refueling substandard cylinders
An Ogra official said that the regulator, in consultation with the All-Pakistan CNG Association, has decided to impose a ban on refueling CNG in public sector vehicles that use substandard cylinders.
The decision was taken in a recent meeting attended by representatives of Hydrocarbon Development Institute of Pakistan and the explosives department, he added.
He said that CNG stations were allowed to refuel vehicles that have company-fitted cylinders.
“During the last two-day inspection, Sui Northern Gas Pipeline Limited has disconnected gas supply to 13 CNG stations that were violating the decision of not refuelling CNG in vehicles with substandard cylinders,” he said.
“Ogra will continue inspection of CNG stations for strict compliance of safety procedures,” he said, adding that provincial governments had also been asked to take strict actions against illegal cylinder workshops.
Ogra chairman, however, ruled out that the regulator had imposed a ban on refuelling of CNG in public sector vehicles.
Published in The Express Tribune, January 1st, 2012.