Investment of about Rs 50 billion has stuck up as licences issued for setting up 2000 compressed natural gas (CNG) stations have been cancelled across the country due to failure to construct the facilities within the given timeframe of two years.Sources told Business Recorder on Wednesday that the Oil and Gas Regulatory Authority (Ogra) had granted licences to 3817 applicants across the country for setting up CNG station.
Of this number, 1817 stations are in construction process, they said. Majority of such licensees belongs to Punjab, while the other provinces were issued fewer licences, sources said. These licences had been issued two years back and due to non-compliance within two-year time, these had been time-barred. According to SRO 714 (1)/92, Rule 7, the period of licence is initially valid for a period of up to two years, during which period the licensee must execute the work in pursuance of rule 10.
Under the rule, the execution of works must be to the satisfaction of the Authority in accordance with the code of practice, appended to the rules, within a period of two years or such further period as the Authority may allow, under special circumstances, proved by the licensee to be beyond his control.
At present, there are 1231 CNG stations operational across the country and over 11,74,000 vehicles have been switched to CNG. The CNG station owners registered a decline of 2000 daily or from 12,000 to 10,000 vehicles for convergence from petrol to CNG.
Pakistan is set to grab the top position as the largest using nation of compressed natural gas (CNG) in the world. At present, the growth of the country's CNG sector is very rapid and the sector has achieved a large infrastructure in a short span of time. In the last two years, it has established indigenous manufacturing plant of CNG cylinders and could capture international market and to meet country's growing demand of such equipment.
Comments
Comments are closed.