Compressed natural gas (CNG) dealers have said that they are working on a strategy to help reduce gas outages by 50 per cent across the country before the arrival of next winter season.
“We have tested an energy saving plan for domestic consumers, which saved 65 per cent of gas,” said All Pakistan CNG Association Central Chairman Ghayas Abdullah Paracha while addressing a press conference here on Thursday.
The dealers are working on three proposals which include efficient use of gas by residential consumers, additional revenue generation in the gas sector and controlling wastage of gas.
“We will unveil the programme in early March,” Paracha said and cited gas saving measures which were applied to a sample of 300 domestic consumers without any financial help from the government and proved successful.
Referring to a constitutional petition filed under Article 158 of the Constitution dealing with natural gas distribution among provinces, Paracha called for the distribution of natural gas on fair, just and equitable basis.
He suggested that industrial units and business enterprises having no options to tap alternative energy should be accorded priority in gas supply.
“Business units contributing higher revenues to the government and providing direct benefits to the people must be given priority too,” Paracha said, adding the additional tax imposed on CNG dealers in the form of a cess should be withdrawn.
Discussing the planned import of LNG, he said if the government could not install mega plants and terminals at the Karachi Port, the CNG dealers could play a vital role in constructing mini-plants and storages across the country.
Giving a comparison, Paracha said gas consumption by the CNG sector in 2011 rose 1 per cent, industry 4.5 per cent, power companies and captive power plants 3 per cent and residential consumers 17 per cent.
However, he said the CNG sector was paying the highest price of Rs842 per million British thermal units (mmbtu). “The CNG sector is consuming 7 per cent of total gas but is contributing 29 per cent revenue while the industry is using 42 per cent of gas and is contributing 31 per cent revenue.”
He said CNG and petrol were alternative fuels and CNG price had been fixed at 55 per cent of petrol price. In the same way, prices for other sectors using gas should be linked with furnace oil rates, which was their alternative.
Cautioning the government, Paracha said fares would rise two and a half times if attempts were made to restrict public vehicles from using CNG.
Speaking on the occasion, Sarfaraz Sheikh, a consultant hired by the association, said the domestic sector consumed 647 mmcfd of gas but its efficiency rate was 30 to 35 per cent, significantly lower than internationally accepted standard of 65 to 70 per cent.
“We can save 300 mmcfd by implementing the energy efficiency programme in the domestic sector,” he added.
Published in The Express Tribune, February 10th, 2012.
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