Warning signal: Existing infrastructure may not sustain gas imports

CNG body official calls for revamping distribution network.

ISLAMABAD: Pakistan may not be able to import gas from Iran despite a nuclear deal between Tehran and Washington that has renewed hopes for improved economic ties between the neighbouring countries, a business leader said on Monday.

“Iran has completed its part of the pipeline for transporting 750 million cubic feet of gas per day (mmcfd) and Pakistan has also started work on laying the pipeline over 880 km. However, it has not considered upgrading the gas distribution network,” said Ghiyas Abdullah Paracha, central leader of the All Pakistan CNG Association.

In a statement, he said the existing old-fashioned infrastructure would not be able to sustain the pressure of imported gas and it must be improved immediately, otherwise all efforts to tackle the energy crisis through Iranian gas would go down the drain.

Citing an example, Paracha pointed out that Pakistan had initiated efforts to import liquefied natural gas (LNG) a decade ago, but gas utilities could not upgrade the capacity of pipelines which led to under-utilisation of LNG.

“The LNG terminal can handle 660 mmcfd of gas but the pipelines could not transport over 325 mmcfd, which is another example of mismanagement and incompetence of the gas companies for which the country and people are paying the price.”

Saying that LNG and Iranian gas were costly than locally produced natural gas, he suggested that gas companies should be asked to reduce the losses caused by theft and leakage, which stood at 14%, to internationally accepted 1.5% to 2%.

He also asked the government to take stern action against the officials foiling efforts to reduce gas transmission and distribution losses and curb theft of energy.

Published in The Express Tribune, July 28^th, 2015.

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