Time Trial: Punjab CNG stations to get gas all week
If successful, formula to be implemented permanently.
Minister for petroleum and natural resources Shahid Khaqan Abbasi addressing the All Pakistan CNG Association in Karachi. PHOTO: APP
LAHORE:
Following the footsteps of the textile industry that pushed for gas availability throughout the week, the All Pakistan Compressed Natural Gas Association (APCNGA) also managed to get approval for the provision of Compressed National Gas (CNG) in Punjab for six hours a day but throughout the week.
All CNG stations in Punjab will be open from 10am to 4pm Monday through Saturday and from 6am to midnight on Sunday.
“The government is committed to protect investments in the CNG sector, which unfortunately is in a crisis due to bad policies of the previous governments,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.
“From the April 1, CNG stations in Punjab will be provided gas six hours per day and for 18 hours on Sundays,” said Abbasi.
Abbasi, who was invited by the APCNGA for an announcement for the revival of the CNG sector, further said that this formula is being implemented on a trial basis and if positive results are observed then the formula will be implemented permanently.
CNG sector of Pakistan, whose infrastructural investments are around Rs450 billion with Rs160 billion in CNG kits, are the worst victims of the energy crisis. In Punjab, CNG stations, which have just reopened after a winter break of around 3 months, will be the major beneficiary of this decision as other provinces were being provided with CNG throughout the winter season.
The sector, which was once known as the best profit-making venture, is now losing its charm due to gas shortages. Out of a total of 2,300 CNG stations in Punjab, about 200 have permanently been shut down and the sites are now used for other commercial purposes. Another 100 stations are close to shutting down.
Abbasi informed that if gas is provided to all Independent Power Producers (IPP) then the power shortfall will immediately reduce by half, but other sectors including CNG have to be accommodated as well.
“We spend most of our time in balancing the gas management plan and are hopeful that the first LNG terminal will be operational before year end,” said Abbasi, adding that only new gas exploration can yield long-term sustainability.
“The issue for the CNG sector is the price,” said APCNGA Supreme Council Chairman Ghayas Paracha, adding that the sector is purchasing gas at Rs656 per million British thermal units –higher than any other industry.
Paracha further said that APCNGA will accept the tariff hike for the sector as long as continuous gas supply is ensured. “We know uninterrupted gas supply to the CNG sector is impossible but we will work with the concerned departments to achieve this target.”
Published in The Express Tribune, March 30th, 2014.
Following the footsteps of the textile industry that pushed for gas availability throughout the week, the All Pakistan Compressed Natural Gas Association (APCNGA) also managed to get approval for the provision of Compressed National Gas (CNG) in Punjab for six hours a day but throughout the week.
All CNG stations in Punjab will be open from 10am to 4pm Monday through Saturday and from 6am to midnight on Sunday.
“The government is committed to protect investments in the CNG sector, which unfortunately is in a crisis due to bad policies of the previous governments,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.
“From the April 1, CNG stations in Punjab will be provided gas six hours per day and for 18 hours on Sundays,” said Abbasi.
Abbasi, who was invited by the APCNGA for an announcement for the revival of the CNG sector, further said that this formula is being implemented on a trial basis and if positive results are observed then the formula will be implemented permanently.
CNG sector of Pakistan, whose infrastructural investments are around Rs450 billion with Rs160 billion in CNG kits, are the worst victims of the energy crisis. In Punjab, CNG stations, which have just reopened after a winter break of around 3 months, will be the major beneficiary of this decision as other provinces were being provided with CNG throughout the winter season.
The sector, which was once known as the best profit-making venture, is now losing its charm due to gas shortages. Out of a total of 2,300 CNG stations in Punjab, about 200 have permanently been shut down and the sites are now used for other commercial purposes. Another 100 stations are close to shutting down.
Abbasi informed that if gas is provided to all Independent Power Producers (IPP) then the power shortfall will immediately reduce by half, but other sectors including CNG have to be accommodated as well.
“We spend most of our time in balancing the gas management plan and are hopeful that the first LNG terminal will be operational before year end,” said Abbasi, adding that only new gas exploration can yield long-term sustainability.
“The issue for the CNG sector is the price,” said APCNGA Supreme Council Chairman Ghayas Paracha, adding that the sector is purchasing gas at Rs656 per million British thermal units –higher than any other industry.
Paracha further said that APCNGA will accept the tariff hike for the sector as long as continuous gas supply is ensured. “We know uninterrupted gas supply to the CNG sector is impossible but we will work with the concerned departments to achieve this target.”
Published in The Express Tribune, March 30th, 2014.